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PHILIPPINE BIDDING DOCUMENTS(As Harmonized with Development Partners)

PROCUREMENT OF THE FOLLOWING:

BID LOT I: 2 UNITS VILLAGE TYPE GRAIN/RICE POSTHARVEST

PROCESSING CENTER

COMPONENT A = MULTI PASS RICE MILL (Php3,200,000.00)

COMPONENT B = CONSTRUCTION OF WAREHOUSE (Php2,000,000.00)

COMPONENT C = BATCH RECIRCULATING DRYER (WITH MULTI-FUEL

BIOMASS FURNACE (Php1,700,000.00)

BID LOT II: 1 UNIT REHABILITATION AND RETROFITTING OF

BIOMASS FURNACE TO EXISTING RECIRCULATING MECHANICAL DRYER

(WITH COUNTER PARTING SCHEME OF 85:15%) = Php575,000.00

TOTAL ABC = Php7,475,000.00

Government of the Republic of the Philippines

Fourth Edition

December 2010

TABLE OF CONTENTS

SECTION I. INVITATION TO BID ................. ERROR! BOOKMARK NOT DEFINED.

SECTION II. INSTRUCTIONS TO BIDDERS ................................ 6

SECTION III. BID DATA SHEET ..................................... 37

SECTION IV. GENERAL CONDITIONS OF CONTRACT.......................... 42

SECTION V. SPECIAL CONDITIONS OF CONTRACT........................... 59

SECTION VI. SCHEDULE OF REQUIREMENTS............................... 67

SECTION VII. TECHNICAL SPECIFICATIONS.............................. 69

SECTION VIII. BIDDING FORMS ................. ERROR! BOOKMARK NOT DEFINED.

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Regional Field Unit No. 10Antonio Luna St., Cagayan de Oro City

PABX (Telefax) No. (088-22) 725-725; (088) 856-2755

Email Address: cagayandeoro.da.gov.ph

ITB# 2013-27

INVITATION TO BIDMANUFACTURERS/DEALERS/SUPPLIERS/DISTRIBUTORS

PROCUREMENT OF THE FOLLOWING:

BID LOT I: 2 UNITS VILLAGE TYPE GRAIN/RICE POSTHARVEST PROCESSING CENTER

COMPONENT A = MULTI PASS RICE MILL (Php3,200,000.00)

COMPONENT B = CONSTRUCTION OF WAREHOUSE (Php2,000,000.00)

COMPONENT C = BATCH RECIRCULATING DRYER (WITH MULTI-FUEL BIOMASS FURNACE)

(Php1,700,000.00)

BID LOT II: 1 UNIT REHABILITATION AND RETROFITTING OF BIOMASS FURNACE TO

EXISTING RECIRCULATING MECHANICAL DRYER = PHP575,000.00 (WITH COUNTER-PARTING

SCHEME OF 85:15%)

The Department of Agriculture – Regional Office 10, through the AGRI-PINOY RICE

PROGRAM CY 20131intends to apply the sum of SEVEN MILLION FOUR HUNDRED SEVENTY FIVE

THOUSAND PESOS (PHP7,475,000.00) being the Total Approved Budget for the Contract

(ABC) to payment under the contract for the Procurement of 2 UNITS VILLAGE TYPE

GRAIN/RICE POSTHARVEST PROCESSING CENTER AND 1 UNIT REHABILITATION AND RETROFITTING OF

BIOMASS FURNACE TO EXISTING RECIRCULATING MECHANICAL DRYER under AGRI-PINOY RICE

PROGRAM CY 2013. Bids received in excess of the ABC shall be automatically rejected at

bid opening.

The Department of Agriculture – Regional Office 10 now invites MANUFACTURERS,

DEALERS, SUPPLIERS and DISTRIBUTORS to bid for the Procurement of 2 UNITS

VILLAGE TYPE GRAIN/RICE POSTHARVEST PROCESSING CENTER AND 1 UNIT REHABILITATION

AND RETROFITTING OF BIOMASS FURNACE TO EXISTING RECIRCULATING MECHANICAL

DRYER.2Delivery of the Goods is required within NINETY (90) calendar days upon

the receipt of the Notice to Proceed directly to the recipient in Malaybalay

City, Bukidnon.

Bidders should have completed, within 5 years from the date of submission and

receipt of bids, a contract similar to the Project. The description of an

eligible bidder is contained in the Bidding Documents, particularly, in Section

II. Instruction to Bidders.

Bidding will be conducted through open competitive bidding procedures using a

non-discretionary “pass/fail” criterion as specified in the Implementing

1 In the case of National Government Agencies, the General Appropriations Act and/or continuing appropriations; in the case of GOCCs, GFIs,and SUCs, the Corporate Budget for the contract approved by the governing Boards; in the case of (LGUs, the Budget for the contract approvedby the respective Sanggunian. (Section 5(a), R.A. 9184)2 A brief description of the type(s) of Goods should be provided, including quantities, location of project, and other information necessary toenable potential bidders to decide whether or not to respond to the invitation.

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Rules and Regulations (IRR) of Republic Act (RA) 9184, otherwise known as the

“Government Procurement Reform Act”.

Bidders specifically allow “PARTIAL BID”, bids not addressing or providing

all of the required items in the Bidding Documents.

Bidding is restricted to Filipino citizens/sole proprietorships, partnerships,

or organizations with at least sixty percent (60%) interest or outstanding

capital stock belonging to citizens of the Philippines, and to citizens or

organizations of a country the laws or regulations of which grant similar

rights or privileges to Filipino citizens, pursuant to RA 5183 and subject to

Commonwealth Act 138.

Interested bidders may obtain further information from Department of

Agriculture – Regional Office 10 and inspect the Bidding Documents at the

address given below during 8:30AM to 5:00 P.M., Monday to Friday.

A complete set of Bidding Documents may be purchased by interested Bidders on

MARCH 9, 2013 – APRIL 2, 2013 from the address below and upon payment of a

nonrefundable fee for the Bidding Documents in the amount of TEN THOUSAND PESOS

(Php10,000.00).

It may also be downloaded free of charge from the website of the Philippine

Government Electronic Procurement System (PhilGEPS) and the website of the

Procuring Entity, provided that Bidders shall pay the nonrefundable fee for the

Bidding Documents not later than the submission of their bids.

The Department of Agriculture – Regional Office 10 will hold a PRE-BID

CONFERENCE on MARCH 19, 2013, 9:00AM at Bids and Awards Committee Office, which

shall be open to all interested parties. However, only those who have purchased

the bidding documents shall be allowed to raise or submit queries or

clarifications.

Bids must be delivered to the address below on or before APRIL 2, 2013, 9:00AM.

All Bids must be accompanied by a bid security in any of the acceptable forms

and in the amount stated in ITB Clause 19, to wit:

Form of Bid SecurityAmount of Bid Security

(Equal to Percentage of the ABC)

(a)Cash or cashier’s/manager’s check

issued by a Universal or Commercial

Bank.

Two percent (2%)

(b)Bank draft/guarantee or irrevocable

letter of credit issued by a Universal

or Commercial Bank: Provided, however,

that it shall be confirmed or

authenticated by a Universal or

Commercial Bank, if issued by a

foreign bank.

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(c)Surety bond callable upon demand

issued by a surety or insurance

company duly certified by the

Insurance Commission as authorized to

issue such security.

Five percent (5%)

(d)Any combination of the foregoing. Proportionate to share of form

with respect to total amount of

security

(e)Bid Securing Declaration (GPPB Res.

No. 03-2012, dated January 2012)

Form attached

BID OPENING shall be on APRIL 2, 2013, 9:00AM at Bids and Awards Committee

Conference Room. Bids will be opened in the presence of the Bidders’

representatives.LATE BIDS SHALL NOT BE ACCEPTED.

The Department of Agriculture – Regional Office 10reserves the right to

accept or reject any bid, to annul the bidding process, and to reject all bids

at any time prior to contract award, without thereby incurring any liability

to the affected bidder or bidders.

For further information, please refer to:

Department of Agriculture-Regional Office 10

ERLINDA T. QUIBLAT

Head BAC Secretariat

Department of Agriculture-Regional Office 10

Antonio Luna St., Cagayan de Oro City

PABX: (088) 856-2753 to 55

www.cagayandeoro.da.gov.ph

RTD CONSTANCIO C. MAGHANOY, JR.

Chair, Bids and Awards Committee

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Section II. Instructions to Bidders

Notes on the Instructions to Bidders

This section of the Bidding Documents provides the information necessary

for Bidders to prepare responsive bids, in accordance with the

requirements of the Procuring Entity. It also provides information on bid

submission, opening, evaluation, and award of contract.

Section II contains provisions that are to be used unchanged. Section III

consists of provisions that supplement, amend, or specify in detail,

information or requirements included in Section II which are specific to

each procurement.

Matters governing performance of the Bidder, payments, or those affecting

the risks, rights, and obligations of the parties under the contract are

not normally included in this section, but rather under Section IV.

General Conditions of Contract, and/or Section V. Special Conditions of

Contract. If duplication of a subject is inevitable in the other sections

of the document prepared by the Procuring Entity, care must be exercised

to avoid contradictions between clauses dealing with the same matter.

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TABLE OF CONTENTS

A. GENERAL ..................................................... 9

1. Scope of Bid......................................................9

2. Source of Funds...................................................9

3. Corrupt, Fraudulent, Collusive, and Coercive Practices............9

4. Conflict of Interest.............................................11

5. Eligible Bidders.................................................12

6. Bidder’s Responsibilities.......................................14

7. Origin of Goods..................................................15

8. Subcontracts.....................................................15

B. CONTENTS OF BIDDING DOCUMENTS................................... 16

9. Pre-Bid Conference...............................................16

10. Clarification and Amendment of Bidding Documents.................16

C. PREPARATION OF BIDS........................................... 17

11. Language of Bid..................................................17

12. Documents Comprising the Bid: Eligibility and Technical Components17

13. Documents Comprising the Bid: Financial Component................19

14. Alternative Bids.................................................20

15. Bid Prices.......................................................20

16. Bid Currencies...................................................21

17. Bid Validity.....................................................22

18. Bid Security.....................................................22

19. Format and Signing of Bids.......................................25

20. Sealing and Marking of Bids......................................25

D. SUBMISSION AND OPENING OF BIDS .................................. 26

21. Deadline for Submission of Bids..................................26

22. Late Bids........................................................26

23. Modification and Withdrawal of Bids..............................26

24. Opening and Preliminary Examination of Bids......................27

E. EVALUATION AND COMPARISON OF BIDS................................ 28

25. Process to be Confidential.......................................28

26. Clarification of Bids............................................29

27. Domestic Preference..............................................29

28. Detailed Evaluation and Comparison of Bids.......................30

29. Post-Qualification...............................................31

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30. Reservation Clause...............................................32

F. AWARD OF CONTRACT ............................................ 33

31. Contract Award...................................................33

32. Signing of the Contract..........................................34

33. Performance Security.............................................35

34. Notice to Proceed................................................36

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General

2. Scope of Bid

2.1. The procuring entity named in the BDS (hereinafter referred to

as the “Procuring Entity”) wishes to receive bids for supply and

delivery of the goods as described in Section VII. Technical

Specifications (hereinafter referred to as the “Goods”).

2.2. The name, identification, and number of lots specific to this

bidding are provided in the BDS. The contracting strategy and

basis of evaluation of lots is described in ITB Clause 29.

3. Source of Funds

The Procuring Entity has a budget or has applied for or received funds

from the Funding Source named in the BDS, and in the amount indicated

in the BDS. It intends to apply part of the funds received for the

Project, as defined in the BDS, to cover eligible payments under the

contract.

4. Corrupt, Fraudulent, Collusive, and Coercive Practices

4.1. Unless otherwise specified in the BDS, the Procuring Entity as

well as the bidders and suppliers shall observe the highest

standard of ethics during the procurement and execution of the

contract. In pursuance of this policy, the Procuring Entity:

(a) defines, for purposes of this provision, the terms set forth

below as follows:

(i) “corrupt practice” means behavior on the part of

officials in the public or private sectors by which

they improperly and unlawfully enrich themselves,

others, or induce others to do so, by misusing the

position in which they are placed, and includes the

offering, giving, receiving, or soliciting of anything

of value to influence the action of any such official

in the procurement process or in contract execution;

entering, on behalf of the government, into any

contract or transaction manifestly and grossly

disadvantageous to the same, whether or not the public

officer profited or will profit thereby, and similar

acts as provided in RA 3019.

(ii) “fraudulent practice” means a misrepresentation of

facts in order to influence a procurement process or

the execution of a contract to the detriment of the

Procuring Entity, and includes collusive practices

among Bidders (prior to or after bid submission)

designed to establish bid prices at artificial, non-

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competitive levels and to deprive the Procuring Entity

of the benefits of free and open competition.

(iii) “collusive practices” means a scheme or arrangement

between two or more Bidders, with or without the

knowledge of the Procuring Entity, designed to

establish bid prices at artificial, non-competitive

levels.

(iv) “coercive practices” means harming or threatening to

harm, directly or indirectly, persons, or their

property to influence their participation in a

procurement process, or affect the execution of a

contract;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an

administrative proceedings or investigation or

making false statements to investigators in

order to materially impede an administrative

proceedings or investigation of the Procuring

Entity or any foreign government/foreign or

international financing institution into

allegations of a corrupt, fraudulent, coercive

or collusive practice; and/or threatening,

harassing or intimidating any party to prevent

it from disclosing its knowledge of matters

relevant to the administrative proceedings or

investigation or from pursuing such proceedings

or investigation; or

(bb) acts intended to materially impede the exercise

of the inspection and audit rights of the

Procuring Entity or any foreign

government/foreign or international financing

institution herein.

(b) will reject a proposal for award if it determines that the

Bidder recommended for award has engaged in any of the

practices mentioned in this Clause for purposes of competing

for the contract.

4.2. Further, the Procuring Entity will seek to impose the maximum

civil, administrative, and/or criminal penalties available under

applicable laws on individuals and organizations deemed to be

involved in any of the practices mentioned in ITB Clause 4.1(a).

4.3. Furthermore, the Funding Source and the Procuring Entity reserve

the right to inspect and audit records and accounts of a bidder or

supplier in the bidding for and performance of a contract

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themselves or through independent auditors as reflected in the GCC

Clause 3.

5. Conflict of Interest

5.1. All Bidders found to have conflicting interests shall be

disqualified to participate in the procurement at hand, without

prejudice to the imposition of appropriate administrative, civil,

and criminal sanctions. A Bidder may be considered to have

conflicting interests with another Bidder in any of the events

described in paragraphs (a) through (c) below and a general

conflict of interest in any of the circumstances set out in

paragraphs (d) through (f) below:

(a) A Bidder has controlling shareholders in common with another

Bidder;

(b) A Bidder receives or has received any direct or indirect

subsidy from any other Bidder;

(c) A Bidder has the same legal representative as that of

another Bidder for purposes of this bid;

(d) A Bidder has a relationship, directly or through third

parties, that puts them in a position to have access to

information about or influence on the bid of another Bidder

or influence the decisions of the Procuring Entity regarding

this bidding process. This will include a firm or an

organization who lends, or temporarily seconds, its

personnel to firms or organizations which are engaged in

consulting services for the preparation related to

procurement for or implementation of the project if the

personnel would be involved in any capacity on the same

project;

(e) A Bidder submits more than one bid in this bidding process.

However, this does not limit the participation of

subcontractors in more than one bid; or

(f) A Bidder who participated as a consultant in the preparation

of the design or technical specifications of the Goods and

related services that are the subject of the bid.

5.2. In accordance with Section 47 of the IRR of RA 9184, all Bidding

Documents shall be accompanied by a sworn affidavit of the Bidder

that it is not related to the Head of the Procuring Entity,

members of the Bids and Awards Committee (BAC), members of the

Technical Working Group (TWG), members of the BAC Secretariat, the

head of the Project Management Office (PMO) or the end-user unit,

and the project consultants, by consanguinity or affinity up to

the third civil degree. On the part of the Bidder, this Clause

shall apply to the following persons:

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(a) If the Bidder is an individual or a sole proprietorship, to

the Bidder himself;

(b) If the Bidder is a partnership, to all its officers and

members;

(c) If the Bidder is a corporation, to all its officers,

directors, and controlling stockholders; and

(d) If the Bidder is a joint venture (JV), the provisions of

items (a), (b), or (c) of this Clause shall correspondingly

apply to each of the members of the said JV, as may be

appropriate.

Relationship of the nature described above or failure to comply

with this Clause will result in the automatic disqualification of

a Bidder.

6. Eligible Bidders

6.1. Unless otherwise provided in the BDS, the following persons shall

be eligible to participate in this bidding:

(a) Duly licensed Filipino citizens/sole proprietorships;

(b) Partnerships duly organized under the laws of the

Philippines and of which at least sixty percent (60%) of the

interest belongs to citizens of the Philippines;

(c) Corporations duly organized under the laws of the

Philippines, and of which at least sixty percent (60%) of

the outstanding capital stock belongs to citizens of the

Philippines;

(d) Cooperatives duly organized under the laws of the

Philippines, and of which at least sixty percent (60%) of

the interest belongs to citizens of the Philippines; and

(e) Unless otherwise provided in the BDS, persons/entities

forming themselves into a JV, i.e., a group of two (2) ormore persons/entities that intend to be jointly and

severally responsible or liable for a particular contract:

Provided, however, that Filipino ownership or interest of

the joint venture concerned shall be at least sixty

percent(60%).

6.2. Foreign bidders may be eligible to participate when any of the

following circumstances exist, as specified in the BDS:

(a) When a Treaty or International or Executive Agreement as

provided in Section 4 of the RA 9184 and its IRR allow

foreign bidders to participate;

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(b) Citizens, corporations, or associations of a country,

included in the list issued by the GPPB, the laws or

regulations of which grant reciprocal rights or privileges

to citizens, corporations, or associations of the

Philippines;

(c) When the Goods sought to be procured are not available from

local suppliers; or

(d) When there is a need to prevent situations that defeat

competition or restrain trade.

6.3. Government corporate entities may be eligible to participate only

if they can establish that they (a) are legally and financially

autonomous, (b) operate under commercial law, and (c) are not

dependent agencies of the GOP or the Procuring Entity.

6.4. Unless otherwise provided in the BDS, the Bidder must have

completed at least one contract similar to the Project the value

of which, adjusted to current prices using the National Statistics

Office consumer price index, must be at least equivalent to a

percentage of the ABC stated in the BDS.

For this purpose, contracts similar to the Project shall be those

described in the BDS, and completed within the relevant period

stated in the Invitation to Bid and ITB Clause 13.1(a)(iii).

6.5. The Bidder must submit a computation of its Net Financial

Contracting Capacity (NFCC) or a commitment from a Universal or

Commercial Bank to extend a credit line in its favor if awarded

the contract for this Project (CLC).

The NFCC, computed using the following formula, must be at least

equal to the ABC to be bid:

NFCC = [(Current assets minus current liabilities) (K)] minus

the value of all outstanding or uncompleted portions of the

projects under ongoing contracts, including awarded contracts

yet to be started coinciding with the contract for this

Project.

Where:

K = 10 for a contract duration of one year or less, 15 for a

contract duration of more than one year up to two years, and 20

for a contract duration of more than two years.

The CLC must be at least equal to ten percent (10%) of the ABC for

this Project. If issued by a foreign bank, it shall be confirmed

or authenticated by a Universal or Commercial Bank. In the case of

local government units (LGUs), the Bidder may also submit CLC from

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other banks certified by the Bangko Sentral ng Pilipinas (BSP) as

authorized to issue such financial instrument.

7. Bidder’s Responsibilities

7.1. The Bidder or its duly authorized representative shall submit a

sworn statement in the form prescribed in Error! Reference sourcenot found. Section VIII. Bidding Sample Forms as required in ITB

Clause 13.1(b)(iii).

7.2. The Bidder is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding

Documents;

(b) Having acknowledged all conditions, local or otherwise,

affecting the implementation of the contract;

(c) Having made an estimate of the facilities available and

needed for the contract to be bid, if any;

(d) Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin(s) as provided under ITB Clause

11.3.

(e) Ensuring that it is not “blacklisted” or barred from

bidding by the GOP or any of its agencies, offices,

corporations, or LGUs, including foreign government/foreign

or international financing institution whose blacklisting

rules have been recognized by the GPPB;

(f) Ensuring that each of the documents submitted in

satisfaction of the bidding requirements is an authentic

copy of the original, complete, and all statements and

information provided therein are true and correct;

(g) Authorizing the Head of the Procuring Entity or its duly

authorized representative/s to verify all the documents

submitted;

(h) Ensuring that the signatory is the duly authorized

representative of the Bidder, and granted full power and

authority to do, execute and perform any and all acts

necessary and/or to represent the Bidder in the bidding,

with the duly notarized Secretary’s Certificate attesting

to such fact, if the Bidder is a corporation, partnership,

cooperative, or joint venture;

(i) Complying with the disclosure provision under Section 47 of

RA 9184 in relation to other provisions of RA 3019; and

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(j) Complying with existing labor laws and standards, in the

case of procurement of services.

Failure to observe any of the above responsibilities shall be at

the risk of the Bidder concerned.

7.3. The Bidder is expected to examine all instructions, forms, terms,

and specifications in the Bidding Documents.

7.4. It shall be the sole responsibility of the Bidder to determine and

to satisfy itself by such means as it considers necessary or

desirable as to all matters pertaining to the contract to be bid,

including: (a) the location and the nature of this Project; (b)

climatic conditions; (c) transportation facilities; and (d) other

factors that may affect the cost, duration, and execution or

implementation of this Project.

7.5. The Procuring Entity shall not assume any responsibility regarding

erroneous interpretations or conclusions by the prospective or

eligible bidder out of the data furnished by the procuring entity.

7.6. The Bidder shall bear all costs associated with the preparation

and submission of his bid, and the Procuring Entity will in no

case be responsible or liable for those costs, regardless of the

conduct or outcome of the bidding process.

7.7. Before submitting their bids, the Bidder is deemed to have become

familiar with all existing laws, decrees, ordinances, acts and

regulations of the Philippines which may affect this Project in

any way.

7.8. The Bidder should note that the Procuring Entity will accept bids

only from those that have paid the nonrefundable fee for the

Bidding Documents at the office indicated in the Invitation to

Bid.

8. Origin of Goods

Unless otherwise indicated in the BDS, there is no restriction on the

origin of goods other than those prohibited by a decision of the United

Nations Security Council taken under Chapter VII of the Charter of the

United Nations, subject to ITB Clause 28.1.

9. Subcontracts

9.1. Unless otherwise specified in the BDS, the Bidder may subcontract

portions of the Goods to an extent as may be approved by the

Procuring Entity and stated in the BDS. However, subcontracting

of any portion shall not relieve the Bidder from any liability or

obligation that may arise from the contract for this Project.

16

9.2. Subcontractors must comply with the eligibility criteria and the

documentary requirements specified in the BDS. In the event that

any subcontractor is found by the Procuring Entity to be

ineligible, the subcontracting of such portion of the Goods shall

be disallowed.

9.3. The Bidder may identify the subcontractor to whom a portion of the

Goods will be subcontracted at any stage of the bidding process or

during contract implementation. If the Bidder opts to disclose

the name of the subcontractor during bid submission, the Bidder

shall include the required documents as part of the technical

component of its bid.

Contents of Bidding Documents

10. Pre-Bid Conference

10.1. (a) If so specified in the BDS, a pre-bid conference shall be

held at the venue and on the date indicated therein, to clarify

and address the Bidders’ questions on the technical and financial

components of this Project.

(b) The pre-bid conference shall be held at least twelve (12)calendar days before the deadline for the submission and receiptof bids. If the Procuring Entity determines that, by reason of themethod, nature, or complexity of the contract to be bid, or wheninternational participation will be more advantageous to the GOP,a longer period for the preparation of bids is necessary, the pre-bid conference shall be held at least thirty (30) calendar daysbefore the deadline for the submission and receipt of bids, asspecified in the BDS.

10.2. Bidders are encouraged to attend the pre-bid conference to ensure

that they fully understand the Procuring Entity’s requirements.

Non-attendance of the Bidder will in no way prejudice its bid;

however, the Bidder is expected to know the changes and/or

amendments to the Bidding Documents discussed during the pre-bid

conference.

10.3. Any statement made at the pre-bid conference shall not modify the

terms of the Bidding Documents unless such statement is

specifically identified in writing as an amendment thereto and

issued as a Supplemental/Bid Bulletin.

11. Clarification and Amendment of Bidding Documents

11.1. Bidders who have purchased the Bidding Documents may request for

clarification on any part of the Bidding Documents for an

interpretation. Such request must be in writing and submitted to

the Procuring Entity at the address indicated in the BDS at least

ten (10) calendar days before the deadline set for the submission

and receipt of bids.

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11.2. Supplemental/Bid Bulletins may be issued upon the Procuring

Entity’s initiative for purposes of clarifying or modifying any

provision of the Bidding Documents not later than seven (7)

calendar days before the deadline for the submission and receipt

of bids. Any modification to the Bidding Documents shall be

identified as an amendment.

11.3. Any Supplemental/Bid Bulletin issued by the BAC shall also be

posted on the Philippine Government Electronic Procurement System

(PhilGEPS) and the website of the Procuring Entity concerned, if

available. It shall be the responsibility of all Bidders who

secure the Bidding Documents to inquire and secure

Supplemental/Bid Bulletins that may be issued by the BAC. However,

Bidders who have submitted bids before the issuance of the

Supplemental/Bid Bulletin must be informed and allowed to modify

or withdraw their bids in accordance with ITB Clause 24.

Preparation of Bids

12. Language of Bid

The bid, as well as all correspondence and documents relating to the bid

exchanged by the Bidder and the Procuring Entity, shall be written in

English. Supporting documents and printed literature furnished by the

Bidder may be in another language provided they are accompanied by an

accurate translation in English certified by the appropriate embassy or

consulate in the Philippines, in which case the English translation

shall govern for purposes of interpretation of the bid.

13. Documents Comprising the Bid: Eligibility and Technical

Components

13.1. Unless otherwise indicated in the BDS, the first envelope shall

contain the following eligibility and technical documents:

(a) Eligibility Documents –

Class “A” Documents:

(i) Registration certificate from the Securities and

Exchange Commission (SEC), Department of Trade and

Industry (DTI) for sole proprietorship, or Cooperative

Development Authority (CDA) for cooperatives, or any

proof of such registration as stated in the BDS;

(ii) Mayor’s permit issued by the city or municipality

where the principal place of business of the

prospective bidder is located;

(iii) Statement of all its ongoing and completed government

and private contracts within the period stated in the

BDS, including contracts awarded but not yet started,

18

if any. The statement shall include, for each

contract, the following:

(iii.1) name of the contract;

(iii.2) date of the contract;

(iii.3) kinds of Goods;

(iii.4) amount of contract and value of

outstanding contracts;

(iii.5) date of delivery; and

(iii.6) end user’s acceptance or official

receipt(s) issued for the contract, if

completed.

(iv) Audited financial statements, stamped “received” by

the Bureau of Internal Revenue (BIR) or its duly

accredited and authorized institutions, for the

preceding calendar year, which should not be earlier

than two (2) years from bid submission;(CY 2009-2010

& CY 2010-2011)

(v) NFCC computation or CLC in accordance with ITB Clause

6.5; and

Class “B” Document:

(vi) If applicable, the JVA in case the joint venture is

already in existence, or duly notarized statements

from all the potential joint venture partners stating

that they will enter into and abide by the provisions

of the JVA in the instance that the bid is successful.

(b) Technical Documents –

(i) Bid security in accordance with ITB Clause 19. If the

Bidder opts to submit the bid security in the form of:

(i.1) a bank draft/guarantee or an irrevocable letter

of credit issued by a foreign bank, it shall be

accompanied by a confirmation from a Universal

or Commercial Bank; or

(i.2) a surety bond, it shall be accompanied by a

certification by the Insurance Commission that

the surety or insurance company is authorized to

issue such instruments;

(ii) Conformity with technical specifications, as

enumerated and specified in Sections VI and VII of the

Bidding Documents; and

19

(iii) Sworn statement in accordance with Section 25.2(a)(iv)

of the IRR of RA 9184 and using the form prescribed in

Error! Reference source not found..

14. Documents Comprising the Bid: FinancialComponent14. Documents Comprising the Bid: FinancialComponent

14.1. Unless otherwise stated in the BDS, the financial component of

the bid shall contain the following:

(a) Financial Bid Form, which includes bid prices and the bill

of quantities and the applicable Price Schedules, in

accordance with ITB Clauses 16.1 and 16.4;

(b) If the Bidder claims preference as a Domestic Bidder or

Domestic Entity, a certification from the DTI, SEC, or CDA

issued in accordance with ITB Clause 28, unless otherwise

provided in the BDS; and

(c) Any other document related to the financial component of the

bid as stated in the BDS.

14.2. (a) Unless otherwise stated in the BDS, all bids that

exceed the ABC shall not be accepted.

(b) Unless otherwise indicated in the BDS, for foreign-funded

procurement, a ceiling may be applied to bid prices provided

the following conditions are met:

(i) Bidding Documents are obtainable free of charge on a

freely accessible website. If payment of Bidding

Documents is required by the procuring entity, payment

could be made upon the submission of bids.

(ii) The procuring entity has procedures in place to ensure

that the ABC is based on recent estimates made by the

responsible unit of the procuring entity and that the

estimates reflect the quality, supervision and risk and

inflationary factors, as well as prevailing market

prices, associated with the types of works or goods to

be procured.

(iii) The procuring entity has trained cost estimators on

estimating prices and analyzing bid variances.

(iv) The procuring entity has established a system to

monitor and report bid prices relative to ABC and

engineer’s/procuring entity’s estimate.

(v) The procuring entity has established a system to

monitor and report bid prices relative to ABC and

procuring entity’s estimate. The procuring entity has

established a monitoring and evaluation system for

20

contract implementation to provide a feedback on actual

total costs of goods and works.

15. Alternative Bids

Alternative Bids shall be rejected. For this purpose, alternative bid is

an offer made by a Bidder in addition or as a substitute to its original

bid which may be included as part of its original bid or submitted

separately therewith for purposes of bidding. A bid with options is

considered an alternative bid regardless of whether said bid proposal is

contained in a single envelope or submitted in two (2) or more separate

bid envelopes.

16. Bid Prices

16.1. The Bidder shall complete the appropriate Price Schedules included

herein, stating the unit prices, total price per item, the total

amount and the expected countries of origin of the Goods to be

supplied under this Project.

16.2. The Bidder shall fill in rates and prices for all items of the

Goods described in the Bill of Quantities. Bids not addressing or

providing all of the required items in the Bidding Documents

including, where applicable, Bill of Quantities, shall be

considered non-responsive and, thus, automatically disqualified.

In this regard, where a required item is provided, but no price is

indicated, the same shall be considered as non-responsive, but

specifying a "0" (zero) for the said item would mean that it is

being offered for free to the Government.

16.3. The terms Ex Works (EXW), Cost, Insurance and Freight (CIF), Cost

and Insurance Paid to (CIP), Delivered Duty Paid (DDP), and other

trade terms used to describe the obligations of the parties, shall

be governed by the rules prescribed in the current edition of the

International Commercial Terms (INCOTERMS) published by the

International Chamber of Commerce, Paris.

16.4. Prices indicated on the Price Schedule shall be entered separately

in the following manner:

(a) For Goods offered from within the Procuring Entity’s

country:

(i) The price of the Goods quoted EXW (ex works, ex

factory, ex warehouse, ex showroom, or off-the-shelf,

as applicable), including all customs duties and sales

and other taxes already paid or payable:

(i.1) on the components and raw material used in the

manufacture or assembly of Goods quoted ex works

or ex factory; or

21

(i.2) on the previously imported Goods of foreign

origin quoted ex warehouse, ex showroom, or off-

the-shelf and any Procuring Entity country sales

and other taxes which will be payable on the

Goods if the contract is awarded.

(ii) The price for inland transportation, insurance, and

other local costs incidental to delivery of the Goods

to their final destination.

(iii) The price of other (incidental) services, if any,

listed in the BDS.

(b) For Goods offered from abroad:

(i) Unless otherwise stated in the BDS, the price of the

Goods shall be quoted DDP with the place of

destination in the Philippines as specified in the

BDS. In quoting the price, the Bidder shall be free

to use transportation through carriers registered in

any eligible country. Similarly, the Bidder may

obtain insurance services from any eligible source

country.

(ii) The price of other (incidental) services, if any,

listed in the BDS.

16.5. Prices quoted by the Bidder shall be fixed during the Bidder’s

performance of the contract and not subject to variation or price

escalation on any account. A bid submitted with an adjustable

price quotation shall be treated as non-responsive and shall be

rejected, pursuant to ITB Clause 25.

All bid prices shall be considered as fixed prices, and therefore

not subject to price escalation during contract implementation,

except under extraordinary circumstances.Extraordinary

circumstances refer to events that may be determined by the

National Economic and Development Authority in accordance with the

Civil Code of the Philippines, and upon the recommendation of the

Procuring Entity. Nevertheless, in cases where the cost of the

awarded contract is affected by any applicable new laws,

ordinances, regulations, or other acts of the GOP, promulgated

after the date of bid opening, a contract price adjustment shall

be made or appropriate relief shall be applied on a no loss-no

gain basis.

17. Bid Currencies

17.1. Prices shall be quoted in the following currencies:

(a) For Goods that the Bidder will supply from within the

Philippines, the prices shall be quoted in Philippine Pesos.

22

(b) For Goods that the Bidder will supply from outside the

Philippines, the prices may be quoted in the currency(ies)

stated in the BDS. However, for purposes of bid

evaluation, bids denominated in foreign currencies shall be

converted to Philippine currency based on the exchange rate

as published in the BSP reference rate bulletin on the day

of the bid opening.

17.2. If so allowed in accordance with ITB Clause 17.1, the Procuring

Entity for purposes of bid evaluation and comparing the bid prices

will convert the amounts in various currencies in which the bid

price is expressed to Philippine Pesos at the foregoing exchange

rates.

17.3. Unless otherwise specified in the BDS, payment of the contract

price shall be made in Philippine Pesos.

18. Bid Validity

18.1. Bids shall remain valid for the period specified in the BDSwhich

shall not exceed one hundred twenty (120) calendar days from the

date of the opening of bids.

18.2. In exceptional circumstances, prior to the expiration of the Bid

validity period, the Procuring Entity may request Bidders to

extend the period of validity of their bids. The request and the

responses shall be made in writing. The bid security described in

ITB Clause 18 should also be extended corresponding to the

extension of the bid validity period at the least. A Bidder may

refuse the request without forfeiting its bid security, but his

bid shall no longer be considered for further evaluation and

award. A Bidder granting the request shall not be required or

permitted to modify its bid.

19. Bid Security

19.1. The bid security in the amount stated in the BDS shall be equal

to the percentage of the ABC in accordance with the following

schedule:

Form of Bid Security

Amount of Bid Security

(Equal to Percentage of the

ABC)

(a)Cash or cashier’s/manager’s

check issued by a Universal

or Commercial Bank.

Two percent (2%)

23

(b)Bank draft/guarantee or

irrevocable letter of credit

issued by a Universal or

Commercial Bank: Provided,

however, that it shall be

confirmed or authenticated by

a Universal or Commercial

Bank, if issued by a foreign

bank.

(c)Surety bond callable upon

demand issued by a surety or

insurance company duly

certified by the Insurance

Commission as authorized to

issue such security.

Five percent (5%)

(d)Any combination of the

foregoing.

Proportionate to share of

form with respect to total

amount of security

(e)Bid Securing Declaration (GPPB

Res. No. 03-2012, dated January

2012)

Form attached

For biddings conducted by LGUs, the Bidder may also submit bid

securities in the form of cashier’s/manager’s check, bank

draft/guarantee, or irrevocable letter of credit from other banks

certified by the BSP as authorized to issue such financial

statement.

19.2. The bid security should be valid for the period specified in the

BDS. Any bid not accompanied by an acceptable bid security shall

be rejected by the Procuring Entity as non-responsive.

19.3. No bid securities shall be returned to bidders after the opening

of bids and before contract signing, except to those that failed

or declared as post-disqualified, upon submission of a written

waiver of their right to file a motion for reconsideration and/or

protest. Without prejudice on its forfeiture, bid securities

shall be returned only after the bidder with the Lowest Calculated

and Responsive Bid has signed the contract and furnished the

performance security, but in no case later than the expiration of

the bid security validity period indicated in ITB Clause 19.2.

19.4. Upon signing and execution of the contract pursuant to ITB Clause

33, and the posting of the performance security pursuant to ITB

Clause 34, the successful Bidder’s bid security will be

discharged, but in no case later than the bid security validity

period as indicated in the ITB Clause 19.2.

19.5. The bid security may be forfeited:

(a) if a Bidder:

24

(i) withdraws its bid during the period of bid validity

specified in ITB Clause 18;

(ii) does not accept the correction of errors pursuant to

ITB Clause 29.3(b);

(iii) fails to submit the requirements within the prescribed

period or a finding against their veracity as stated

in ITB Clause 30.2;

(iv) submission of eligibility requirements containing

false information or falsified documents;

(v) submission of bids that contain false information or

falsified documents, or the concealment of such

information in the bids in order to influence the

outcome of eligibility screening or any other stage of

the public bidding;

(vi) allowing the use of one’s name, or using the name of

another for purposes of public bidding;

(vii) withdrawal of a bid, or refusal to accept an award, or

enter into contract with the Government without

justifiable cause, after the Bidder had been adjudged

as having submitted the Lowest Calculated and

Responsive Bid;

(viii)refusal or failure to post the required performance

security within the prescribed time;

(ix) refusal to clarify or validate in writing its bid

during post-qualification within a period of seven (7)

calendar days from receipt of the request for

clarification;

(x) any documented attempt by a bidder to unduly influence

the outcome of the bidding in his favor;

(xi) failure of the potential joint venture partners to

enter into the joint venture after the bid is declared

successful; or

(xii) all other acts that tend to defeat the purpose of the

competitive bidding, such as habitually withdrawing

from bidding, submitting late Bids or patently

insufficient bid, for at least three (3) times within

a year, except for valid reasons.

(b) if the successful Bidder:

(i) fails to sign the contract in accordance with ITB

Clause 33; or

25

(ii) fails to furnish performance security in accordance

with ITB Clause 34.

20. Format and Signing of Bids

20.1. Bidders shall submit their bids through their duly authorized

representative using the appropriate forms provided in Error!Reference source not found. on or before the deadline specified in

the ITB Clauses 22 in two (2) separate sealed bid envelopes, and

which shall be submitted simultaneously. The first shall contain

the technical component of the bid, including the eligibility

requirements under ITB Clause 13.1, and the second shall contain

the financial component of the bid.

20.2. Forms as mentioned in ITB Clause 20.1 must be completed without20.2. Forms as mentioned in ITB Clause 20.1 must be completed without

any alterations to their format, and no substitute form shall be

accepted. All blank spaces shall be filled in with the information

requested.

20.3. The Bidder shall prepare and submit an original of the first and

second envelopes as described in ITB Clauses 13 and 14. In the

event of any discrepancy between the original and the copies, the

original shall prevail.

20.4. The bid, except for un-amended printed literature, shall be

signed, and each and every page thereof shall be initialed, by the

duly authorized representative/s of the Bidder.

20.5. Any interlineations, erasures, or overwriting shall be valid only

if they are signed or initialed by the duly authorized

representative/s of the Bidder.

21. Sealing and Marking of Bids

21.1. Bidders shall enclose their original eligibility and technical

documents described in ITB Clause 13 in one sealed envelope

marked “ORIGINAL - TECHNICAL COMPONENT”, and the original of

their financial component in another sealed envelope marked

“ORIGINAL - FINANCIAL COMPONENT”, sealing them all in an outer

envelope marked “ORIGINAL BID”.

21.2. Each copy of the first and second envelopes shall be similarly

sealed duly marking the inner envelopes as “COPY NO. 1, 2 & 3 -

TECHNICAL COMPONENT” and “COPY NO. 1, 2 &3 – FINANCIAL

COMPONENT” and the outer envelope as “COPY NO. 1, 2 &3

respectively. These envelopes containing the original and the

copies shall then be enclosed in one single envelope.

21.3. The original and the number of copies of the Bid as indicated in

the BDS shall be typed or written in indelible ink and shall be

signed by the bidder or its duly authorized representative/s.

21.4. All envelopes shall:

26

(a) contain the name of the contract to be bid in capital

letters;

(b) bear the name and address of the Bidder in capital letters;

(c) be addressed to the Procuring Entity’s BAC in accordance

with ITB Clause 2.1;

(d) bear the specific identification of this bidding process

indicated in the ITB Clause 2.2; and

(e) bear a warning “DO NOT OPEN BEFORE…” the date and time

for the opening of bids, in accordance with ITB Clause 22.

21.5. If bids are not sealed and marked as required, the Procuring

Entity will assume no responsibility for the misplacement or

premature opening of the bid.

Submission and Opening of Bids

22. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and

on or before the date and time indicated in the BDS.

23. Late Bids

Any bid submitted after the deadline for submission and receipt of bids

prescribed by the Procuring Entity, pursuant to ITB Clause 22, shall be

declared “Late” and shall not be accepted by the Procuring Entity.

24. Modification and Withdrawal of Bids

24.1. The Bidder may modify its bid after it has been submitted;

provided that the modification is received by the Procuring Entity

prior to the deadline prescribed for submission and receipt of

bids. The Bidder shall not be allowed to retrieve its original

bid, but shall be allowed to submit another bid equally sealed,

properly identified, linked to its original bid marked as

“TECHNICAL MODIFICATION” or “FINANCIAL MODIFICATION” and

stamped “received” by the BAC. Bid modifications received after

the applicable deadline shall not be considered and shall be

returned to the Bidder unopened.

24.2. A Bidder may, through a Letter of Withdrawal, withdraw its bid

after it has been submitted, for valid and justifiable reason;

provided that the Letter of Withdrawal is received by the

Procuring Entity prior to the deadline prescribed for submission

and receipt of bids.

24.3. Bids requested to be withdrawn in accordance with ITB Clause 24.1

shall be returned unopened to the Bidders. A Bidder may also

express its intention not to participate in the bidding through a

27

letter which should reach and be stamped by the BAC before the

deadline for submission and receipt of bids. A Bidder that

withdraws its bid shall not be permitted to submit another bid,

directly or indirectly, for the same contract.

24.4. No bid may be modified after the deadline for submission of bids.

No bid may be withdrawn in the interval between the deadline for

submission of bids and the expiration of the period of bid

validity specified by the Bidder on the Financial Bid Form.

Withdrawal of a bid during this interval shall result in the

forfeiture of the Bidder’s bid security, pursuant to ITB Clause

19.5, and the imposition of administrative, civil and criminal

sanctions as prescribed by RA 9184 and its IRR.

25. Opening and Preliminary Examination of Bids

25.1. The BAC shall open the first bid envelopes of Bidders in public as

specified in the BDS to determine each Bidder’s compliance with

the documents prescribed in ITB Clause 13. For this purpose, the

BAC shall check the submitted documents of each bidder against a

checklist of required documents to ascertain if they are all

present, using a non-discretionary “pass/fail” criterion. If a

bidder submits the required document, it shall be rated “passed”

for that particular requirement. In this regard, bids that fail to

include any requirement or are incomplete or patently insufficient

shall be considered as “failed”. Otherwise, the BAC shall rate

the said first bid envelope as “passed”.

25.2. Unless otherwise specified in the BDS, immediately after

determining compliance with the requirements in the first

envelope, the BAC shall forthwith open the second bid envelope of

each remaining eligible bidder whose first bid envelope was rated

“passed”. The second envelope of each complying bidder shall be

opened within the same day. In case one or more of the

requirements in the second envelope of a particular bid is

missing, incomplete or patently insufficient, and/or if the

submitted total bid price exceeds the ABC unless otherwise

provided in ITB Clause 14.2, the BAC shall rate the bid concerned

as “failed”. Only bids that are determined to contain all the

bid requirements for both components shall be rated “passed” and

shall immediately be considered for evaluation and comparison.

25.3. Letters of withdrawal shall be read out and recorded during bid

opening, and the envelope containing the corresponding withdrawn

bid shall be returned to the Bidder unopened. If the withdrawing

Bidder’s representative is in attendance, the original bid and

all copies thereof shall be returned to the representative during

the bid opening. If the representative is not in attendance, the

bid shall be returned unopened by registered mail. The Bidder may

withdraw its bid prior to the deadline for the submission and

receipt of bids, provided that the corresponding Letter of

28

Withdrawal contains a valid authorization requesting for such

withdrawal, subject to appropriate administrative sanctions.

25.4. If a Bidder has previously secured a certification from the

Procuring Entity to the effect that it has previously submitted

the above-enumerated Class “A” Documents, the said certification

may be submitted in lieu of the requirements enumerated in ITB

Clause 13.1(a), items (i) to (v).

25.5. In the case of an eligible foreign Bidder as described in ITB

Clause 6, the Class “A” Documents described in ITB Clause

13.1(a) may be substituted with the appropriate equivalent

documents, if any, issued by the country of the foreign Bidder

concerned.

25.6. Each partner of a joint venture agreement shall likewise submit

the requirements in ITB Clauses 13.1(a)(i) and 13.1(a)(ii).

Submission of documents required under ITB Clauses 13.1(a)(iii)

to 13.1(a)(v) by any of the joint venture partners constitutes

compliance.

25.7. A Bidder determined as “failed” has three (3) calendar days upon

written notice or, if present at the time of bid opening, upon

verbal notification, within which to file a request or motion for

reconsideration with the BAC: Provided, however, that the motion

for reconsideration shall not be granted if it is established that

the finding of failure is due to the fault of the Bidder

concerned: Provided, further, that the BAC shall decide on the

request for reconsideration within seven (7) calendar days from

receipt thereof. If a failed Bidder signifies his intent to file

a motion for reconsideration, the BAC shall keep the bid envelopes

of the said failed Bidder unopened and/or duly sealed until such

time that the motion for reconsideration or protest has been

resolved.

25.8. The Procuring Entity shall prepare the minutes of the proceedings

of the bid opening that shall include, as a minimum: (a) names of

Bidders, their bid price, bid security, findings of preliminary

examination; and (b) attendance sheet. The BAC members shall sign

the abstract of bids as read.

Evaluation and Comparison of Bids

26. Process to be Confidential

26.1. Members of the BAC, including its staff and personnel, as well as

its Secretariat and TWG, are prohibited from making or accepting

any kind of communication with any bidder regarding the evaluation

of their bids until the issuance of the Notice of Award, unless

otherwise allowed in the case of ITB Clause 26.

29

26.2. Any effort by a bidder to influence the Procuring Entity in the

Procuring Entity’s decision in respect of bid evaluation, bid

comparison or contract award will result in the rejection of the

Bidder’s bid.

27. Clarification of Bids

To assist in the evaluation, comparison, and post-qualification of the

bids, the Procuring Entity may ask in writing any Bidder for a

clarification of its bid. All responses to requests for clarification

shall be in writing. Any clarification submitted by a Bidder in respect

to its bid and that is not in response to a request by the Procuring

Entity shall not be considered.

28. Domestic Preference

28.1. Unless otherwise stated in the BDS, the Procuring Entity will

grant a margin of preference for the purpose of comparison of bids

in accordance with the following:

(a) The preference shall be applied when (i) the lowest Foreign

Bid is lower than the lowest bid offered by a Domestic

Bidder, or (ii) the lowest bid offered by a non-Philippine

national is lower than the lowest bid offered by a Domestic

Entity.

(b) For evaluation purposes, the lowest Foreign Bid or the bid

offered by a non-Philippine national shall be increased by

fifteen percent (15%).

(c) In the event that (i) the lowest bid offered by a Domestic

Entity does not exceed the lowest Foreign Bid as increased,

or (ii) the lowest bid offered by a non-Philippine national

as increased, then the Procuring Entity shall award the

contract to the Domestic Bidder/Entity at the amount of the

lowest Foreign Bid or the bid offered by a non-Philippine

national, as the case may be.

(d) If the Domestic Entity/Bidder refuses to accept the award of

contract at the amount of the Foreign Bid or bid offered by

a non-Philippine national within two (2) calendar days from

receipt of written advice from the BAC, the Procuring Entity

shall award to the bidder offering the Foreign Bid or the

non-Philippine national, as the case may be, subject to

post-qualification and submission of all the documentary

requirements under these Bidding Documents.

28.2. A Bidder may be granted preference as a Domestic Entity subject to

the certification from the DTI (in case of sole proprietorships),

SEC (in case of partnerships and corporations), or CDA (in case of

cooperatives) that the (a) sole proprietor is a citizen of the

Philippines or the partnership, corporation, cooperative, or

30

association is duly organized under the laws of the Philippines

with at least seventy five percent (75%) of its interest or

outstanding capital stock belonging to citizens of the

Philippines, (b) habitually established in business and habitually

engaged in the manufacture or sale of the merchandise covered by

his bid, and (c) the business has been in existence for at least

five (5) consecutive years prior to the advertisement and/or

posting of the Invitation to Bid for this Project.

28.3. A Bidder may be granted preference as a Domestic Bidder subject to

the certification from the DTI that the Bidder is offering

unmanufactured articles, materials or supplies of the growth or

production of the Philippines, or manufactured articles,

materials, or supplies manufactured or to be manufactured in the

Philippines substantially from articles, materials, or supplies of

the growth, production, or manufacture, as the case may be, of the

Philippines.

29. Detailed Evaluation and Comparison of Bids

29.1. The Procuring Entity will undertake the detailed evaluation and

comparison of bids which have passed the opening and preliminary

examination of bids, pursuant to ITB Clause 25, in order to

determine the Lowest Calculated Bid.

29.2. The Lowest Calculated Bid shall be determined in two steps:

(a) The detailed evaluation of the financial component of the

bids, to establish the correct calculated prices of the

bids; and

(b) The ranking of the total bid prices as so calculated from

the lowest to the highest. The bid with the lowest price

shall be identified as the Lowest Calculated Bid.

29.3. The Procuring Entity's BAC shall immediately conduct a detailed

evaluation of all bids rated “passed,” using non-discretionary

pass/fail criteria. Unless otherwise specified in the BDS, the

BAC shall consider the following in the evaluation of bids:

(a) Completeness of the bid. Unless the ITB specifically allows

partial bids, bids not addressing or providing all of the

required items in the Schedule of Requirements including,

where applicable, bill of quantities, shall be considered

non-responsive and, thus, automatically disqualified. In

this regard, where a required item is provided, but no price

is indicated, the same shall be considered as non-

responsive, but specifying a "0" (zero) for the said item

would mean that it is being offered for free to the

Procuring Entity; and

31

(b) Arithmetical corrections. Consider computational errors and

omissions to enable proper comparison of all eligible bids.

It may also consider bid modifications, if allowed in the

BDS. Any adjustment shall be calculated in monetary terms

to determine the calculated prices.

29.4. Based on the detailed evaluation of bids, those that comply with

the above-mentioned requirements shall be ranked in the ascending

order of their total calculated bid prices, as evaluated and

corrected for computational errors, discounts and other

modifications, to identify the Lowest Calculated Bid. Total

calculated bid prices, as evaluated and corrected for

computational errors, discounts and other modifications, which

exceed the ABC shall not be considered, unless otherwise indicated

in the BDS.

29.5. The Procuring Entity’s evaluation of bids shall only be based on

the bid price quoted in the Financial Bid Form.

29.6. Bids shall be evaluated on an equal footing to ensure fair

competition. For this purpose, all bidders shall be required to

include in their bids the cost of all taxes, such as, but not

limited to, value added tax (VAT), income tax, local taxes, and

other fiscal levies and duties which shall be itemized in the bid

form and reflected in the detailed estimates. Such bids,

including said taxes, shall be the basis for bid evaluation and

comparison.

30. Post-Qualification

30.1. The Procuring Entity shall determine to its satisfaction whether

the Bidder that is evaluated as having submitted the Lowest

Calculated Bid (LCB) complies with and is responsive to all the

requirements and conditions specified in ITB Clauses 6, 13, and

14.

30.2. Within a non-extendible period of three (3) calendar days from

receipt by the bidder of the notice from the BAC that it submitted

the LCB, the Bidder shall submit the following documentary

requirements:

(a) Tax clearance per Executive Order 398, Series of 2005;

(b) Latest income and business tax returns in the form specified

in the BDS;

(c) Certificate of PhilGEPS Registration; and

(d) Other appropriate licenses and permits required by law and

stated in the BDS.

Failure of the Bidder declared as Lowest Calculated Bid to duly

submit the requirements under this Clause or a finding against the

32

veracity of such shall be ground for forfeiture of the bid

security and disqualification of the Bidder for award.

30.3. The determination shall be based upon an examination of the

documentary evidence of the Bidder’s qualifications submitted

pursuant to ITB Clauses 13 and 14, as well as other information

as the Procuring Entity deems necessary and appropriate, using a

non-discretionary “pass/fail” criterion.

30.4. If the BAC determines that the Bidder with the Lowest Calculated

Bid passes all the criteria for post-qualification, it shall

declare the said bid as the Lowest Calculated Responsive Bid, and

recommend to the Head of the Procuring Entity the award of

contract to the said Bidder at its submitted price or its

calculated bid price, whichever is lower.

30.5. A negative determination shall result in rejection of the

Bidder’s Bid, in which event the Procuring Entity shall proceed

to the next Lowest Calculated Bid to make a similar determination

of that Bidder’s capabilities to perform satisfactorily. If the

second Bidder, however, fails the post qualification, the

procedure for post qualification shall be repeated for the Bidder

with the next Lowest Calculated Bid, and so on until the Lowest

Calculated Responsive Bid is determined for contract award.

30.6. Within a period not exceeding seven (7) calendar days from the

date of receipt of the recommendation of the BAC, the Head of the

Procuring Entity shall approve or disapprove the said

recommendation. In the case of GOCCs and GFIs, the period provided

herein shall be fifteen (15) calendar days.

31. Reservation Clause

31.1. Notwithstanding the eligibility or post-qualification of a Bidder,

the Procuring Entity concerned reserves the right to review its

qualifications at any stage of the procurement process if it has

reasonable grounds to believe that a misrepresentation has been

made by the said Bidder, or that there has been a change in the

Bidder’s capability to undertake the project from the time it

submitted its eligibility requirements. Should such review

uncover any misrepresentation made in the eligibility and bidding

requirements, statements or documents, or any changes in the

situation of the Bidder which will affect its capability to

undertake the project so that it fails the preset eligibility or

bid evaluation criteria, the Procuring Entity shall consider the

said Bidder as ineligible and shall disqualify it from submitting

a bid or from obtaining an award or contract.

31.2. Based on the following grounds, the Procuring Entity reserves the

right to reject any and all bids, declare a failure of bidding at

any time prior to the contract award, or not to award the

contract, without thereby incurring any liability, and make no

33

assurance that a contract shall be entered into as a result of the

bidding:

(a) If there is prima facie evidence of collusion between

appropriate public officers or employees of the Procuring

Entity, or between the BAC and any of the Bidders, or if the

collusion is between or among the bidders themselves, or

between a Bidder and a third party, including any act which

restricts, suppresses or nullifies or tends to restrict,

suppress or nullify competition;

(b) If the Procuring Entity’s BAC is found to have failed in

following the prescribed bidding procedures; or

(c) For any justifiable and reasonable ground where the award of

the contract will not redound to the benefit of the GOP as

follows:

(i) If the physical and economic conditions have

significantly changed so as to render the project no

longer economically, financially or technically

feasible as determined by the head of the procuring

entity;

(ii) If the project is no longer necessary as determined by

the head of the procuring entity; and

(iii) If the source of funds for the project has been

withheld or reduced through no fault of the Procuring

Entity.

31.3. In addition, the Procuring Entity may likewise declare a failure

of bidding when:

(a) No bids are received;

(b) All prospective Bidders are declared ineligible;

(c) All bids fail to comply with all the bid requirements or

fail post-qualification; or

(d) The Bidder with the Lowest Calculated Responsive Bid (LCRB)

refuses, without justifiable cause to accept the award of

contract, and no award is made.

Award of Contract

32. Contract Award

32.1. Subject to ITB Clause 30, the Procuring Entity shall award the

contract to the Bidder whose bid has been determined to be the

LCRB.

34

32.2. Prior to the expiration of the period of bid validity, the

Procuring Entity shall notify the successful Bidder in writing

that its bid has been accepted, through a Notice of Award received

personally or sent by registered mail or electronically, receipt

of which must be confirmed in writing within two (2) days by the

Bidder with the LCRB and submitted personally or sent by

registered mail or electronically to the Procuring Entity.

32.3. Notwithstanding the issuance of the Notice of Award, award of

contract shall be subject to the following conditions:

(a) Submission of the valid JVA, if applicable, within ten (10)

calendar days from receipt by the Bidder of the notice from

the BAC that the Bidder has the LCRB;

(b) Posting of the performance security in accordance with ITB

Clause 34;

(c) Signing of the contract as provided in ITB Clause 33; and

(d) Approval by higher authority, if required.

32.4. At the time of contract award, the Procuring Entity shall not

increase or decrease the quantity of goods originally specified in

Section VI. Schedule of Requirements.

33. Signing of the Contract

33.1. At the same time as the Procuring Entity notifies the successful

Bidder that its bid has been accepted, the Procuring Entity shall

send the Contract Form to the Bidder, which contract has been

provided in the Bidding Documents, incorporating therein all

agreements between the parties.

33.2. Within ten (10) calendar days from receipt of the Notice of Award,

the successful Bidder shall post the required performance security

and sign and date the contract and return it to the Procuring

Entity.

33.3. The Procuring Entity shall enter into contract with the successful

Bidder within the same ten (10) calendar day period provided that

all the documentary requirements are complied with.

33.4. The following documents shall form part of the contract:

(a) Contract Agreement;

(b) Bidding Documents;

(c) Winning bidder’s bid, including the Technical and Financial

Proposals, and all other documents/statements submitted;

(d) Performance Security;

35

(e) Credit line in accordance with ITB Clause 6.5, if

applicable;

(f) Notice of Award of Contract; and

(g) Other contract documents that may be required by existing

laws and/or specified in the BDS.

34. Performance Security

34.1. To guarantee the faithful performance by the winning Bidder of its

obligations under the contract, it shall post a performance

security within a maximum period of THREE (3) calendar days from

the receipt of the Notice of Award from the Procuring Entity and

in no case later than the signing of the contract.

34.2. The performance security shall be denominated in Philippine Pesos

and posted in favor of the Procuring Entity in an amount equal to

the percentage of the total contract price in accordance with the

following schedule:

Form of Performance Security

Amount of Performance

Security

(Equal to Percentage of the

Total Contract Price)

(a) Cash or

cashier’s/manager’s

check issued by a

Universal or Commercial

Bank.

Five percent (5%)

(b) Bank draft/guarantee or

irrevocable letter of

credit issued by a

Universal or Commercial

Bank: Provided, however,

that it shall be confirmed

or authenticated by a

Universal or Commercial

Bank, if issued by a

foreign bank.

(c) Surety bond callable upon

demand issued by a surety

or insurance company duly

certified by the Insurance

Commission as authorized

to issue such security;

and/or

Thirty percent (30%)

(d) Any combination of the

foregoing.

Proportionate to share of

form with respect to total

amount of security

36

34.3. Failure of the successful Bidder to comply with the above-

mentioned requirement shall constitute sufficient ground for the

annulment of the award and forfeiture of the bid security, in

which event the Procuring Entity shall initiate and complete the

post qualification of the second Lowest Calculated Bid. The

procedure shall be repeated until the LCRB is identified and

selected for contract award. However if no Bidder passed post-

qualification, the BAC shall declare the bidding a failure and

conduct a re-bidding with re-advertisement.

35. Notice to Proceed

35.1. Within three (3) calendar days from the date of approval of the

contract by the appropriate government approving authority, the

Procuring Entity shall issue its Notice to Proceed to the Bidder.

35.2. The contract effectivity date shall be provided in the Notice to

Proceed by the Procuring Entity, which date shall not be later

than seven (7) calendar days from the issuance of the Notice to

Proceed.

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Section III. Bid Data SheetITB Clause

2.1 The Procuring Entity is DEPARTMENT OF AGRICULTURE – REGIONAL

OFFICE 10

2.2 The lot(s) and reference is/are: PURCHASE REQUEST NO. 01-99,

DATED JANUARY 11, 2013

2 The Funding Source is:

The Government of the Philippines (GOP) through AGRI-PINOY

RICE PROGRAM CY 2013 in the total amount of SEVEN MILLION FOUR

HUNDRED SEVENTY FIVE THOUSAND PESOS(Php7,475,000.00).

The name of the Project is: PROCUREMENT OF 2 UNITS VILLAGE

TYPE GRAIN/RICE POSTHARVEST PROCESSING CENTER AND 1 UNIT

REHABILITATION AND RETROFITTING OF BIOMASS FURNACE TO EXISTING

RECIRCULATING MECHANICAL DRYER.

4.1 No further instructions.

6.1 No further instructions.

6.2 None of the circumstances mentioned in the ITB Clause exists

in this Project. Foreign bidders, except those falling under

ITB Clause 6.2(b), may not participate in this Project.

6.4 Select one, delete the other.

Maintain the ITB Clause and insert any of the following:

For the procurement of Non-expendable Supplies and

Services: The Bidder must have completed, within the period

specified in the Invitation to Bid and ITB Clause

13.1(a)(iii), a single contract that is similar to this

Project, equivalent to at least fifty percent (50%) of the

ABC.

Or

For the procurement of Expendable Supplies: The Bidder must

have completed, within the period specified in the

Invitation to Bid and ITB Clause 13.1(a)(iii), a single

contract that is similar to this Project, equivalent to at

least twenty-five percent (25%) of the ABC.

Or

For procurement where the Procuring Entity has determined,

after the conduct of market research, that imposition of

the provisions of Section 23.5.1.3 of the IRR of RA 9184

38

will likely result to failure of bidding or monopoly that

will defeat the purpose of public bidding: In view of the

determination by the Procuring Entity that imposition of

the provisions of Section 23.5.1.3 of the IRR of RA 9184

will likely result to [State “failure of bidding” or

“monopoly that will defeat the purpose of public

bidding”, the Bidder should comply with the following

requirements:

a) Completed at least Five (5)years similar contracts, the

aggregate amount of which should be equivalent to at

least [State “fifty percent (50%)” in the case of Non-

expendable Supplies and Services or “twenty-five

percent (25%)” in the case of Expendable Supplies] of

the ABC for this Project; and

b) The largest of these similar contracts must be

equivalent to at least half of the percentage of the ABC

as required above.

For this purpose, similar contracts shall refer to MILLING

SYSTEM & BIOMASS.

8 No further instructions.

9.1 Subcontracting is not allowed.

9.2 Not applicable.

10.1 The Procuring Entity will hold PRE-BID CONFERENCE for this

Project on MARCH 19, 2013, 9:00AM at Bids and Awards Committee

Conference Room, DA-RFU 10, A. Luna St., Cagayan de Oro City

11.1 The Procuring Entity’s address is:

Department of Agriculture-Regional Office 10

ERLINDA T. QUIBLAT

Head BAC Secretariat

Department of Agriculture-Regional Office 10

Antonio Luna St., Cagayan de Oro City

PABX: (088) 856-2753 to 55

www.cagayandeoro.da.gov.ph

13.1(a) No further instructions.

12.1(a)(i) List any additional acceptable proof of registration mentioned

in the ITB Clause or state “NO OTHER ACCEPTABLE PROOF OF

REGISTRATION IS RECOGNIZED.”

13.1(a)(ii

i)

The statement of all ongoing and completed government and

private contracts shall include all such contracts within 5

years prior to the deadline for the submission and receipt of

39

bids.

14.1 List any additional requirements or state “No additional

requirements.”

14.1(b) No further instructions.

14.2 The TOTAL ABC is SEVEN MILLION FOUR HUNDRED SEVENTY FIVE

THOUSAND PESOS (Php7,475,000.00).

PROCUREMENT OF 2 UNITS VILLAGE TYPE GRAIN/RICE POSTHARVEST

PROCESSING CENTER AND 1 UNIT REHABILITATION AND RETROFITTING OF

BIOMASS FURNACE TO EXISTING RECIRCULATING MECHANICAL DRYER.

Any bid with a financial component exceeding this amount shall

not be accepted.

16.4(a)(ii

i)

No incidental services are required.

16.4(b) Not applicable.

“No incidental services are required.”

17.1(b) The Bid prices for Goods supplied from outside of the

Philippines shall be quoted in Philippine Pesos.

16.3 “Not applicable”

18.1 Bids will be valid until AUGUST 2, 2013.

19.1 The bid security shall be in the following amount:

1. The amount of ONE HUNDRED FORTY NINE THOUSAND FIVE HUNDRED

PESOS (Php149,500.00) (2%), if bid security is in cash,

cashier’s/manager’s check, bank draft/guarantee or

irrevocable letter of credit;

2. The amount of THREE HUNDRED SEVENTY THREE THOUSAND SEVEN

HUNDRED FIFTY PESOS & 00/00 (Php373,750.00) (5%) if bid

security is in Surety Bond; or

3. Any combination of the foregoing proportionate to the share

of form with respect to total amount of security.

4. Bid Securing Declaration (GPPB Res. No. 03-2012, dated

January 2012, subscribed and sworn using prescribed form

19.2 The bid security shall be valid until AUGUST 2, 2013.

21.3 Each Bidder shall submit One (1) original and Three (3)copies

of the first and second components of its bid.

22 The address for submission of bids is :

40

BAC Office

Department of Agriculture-Regional Office 10

Antonio Luna Street, Cagayan de Oro City

The deadline for submission of bids is APRIL 2, 2013, 9:00AM.

25.1 The place of bid opening is:

BAC Office

Department of Agriculture-Regional Office 10

Antonio Luna Street, Cagayan de Oro City

The date and time of bid opening is APRIL 2, 2013, 9:00AM @

BAC CONFERENCE ROOM.

24.2 No further instructions.

28.1 No further instructions.

29.3 If applicable, adopt the following provision:

Grouping and Evaluation of Lots –

Lots should be formed of similar items that are likely to

attract the maximum competition. A lot is the quantity and

number of items that will be included in a single contract.

For example:

Option 1 – Each item to be evaluated and compared with other

Bids separately and recommended for contract award separately.

Option 2 - All items to be grouped together to form one

complete Lot that will be awarded to one Bidder to form one

complete contract.

Option 3 - Similar items, to be grouped together to form

several lots that shall be evaluated and awarded as separate

contracts.

Select one of the following paragraphs and delete the other:

The goods are grouped in a single lot and the lot shall not be

divided into sub-lots for the purpose of bidding, evaluation,

and contract award.

Or

All Goods are grouped in lots listed below. Bidders shall have

the option of submitting a proposal on any or all lots and

evaluation and contract award will be undertaken on a per lot

basis. Lots shall not be divided further into sub-lots for the

purpose of bidding, evaluation, and contract award.

41

29.3(b) Bid Modification is NOT ALLOWED

29.4 No further instructions.

29.2(a) No further instructions.

30.2(b) Bidders have option to submit manually filed tax returns or

tax returns filed through the Electronic Filing and Payments

System (EFPS).

NOTE: The latest income and business tax returns are those

within the last six months preceding the date of bid

submission.

30.2(d) List licenses and permits relevant to the Project and the

corresponding law requiring it.

33.4(g) List additional contract documents relevant to the Project

that may be required by existing laws and/or the Procuring

Entity.

42

Section IV. General Conditions ofContract

Notes on the General Conditions of Contract

The GCC in Section IV, read in conjunction with the SCC in Section V and

other documents listed therein, should be a complete document expressing

all the rights and obligations of the parties.

The GCC herein shall not be altered. Any changes and complementary

information, which may be needed, shall be introduced only through the

SCC in Section V.

43

TABLE OF CONTENTS

1. DEFINITIONS ............................................... 44

2. CORRUPT, FRAUDULENT, COLLUSIVE, AND COERCIVE PRACTICES ............ 45

3. INSPECTION AND AUDIT BY THE FUNDING SOURCE ...................... 46

4. GOVERNING LAW AND LANGUAGE ................................... 46

5. NOTICES .................................................. 47

6. SCOPE OF CONTRACT .......................................... 47

7. SUBCONTRACTING............................................. 47

8. PROCURING ENTITY’S RESPONSIBILITIES........................... 47

9. PRICES................................................... 48

10. PAYMENT .................................................. 48

11. ADVANCE PAYMENT AND TERMS OF PAYMENT ........................... 49

12. TAXES AND DUTIES........................................... 49

13. PERFORMANCE SECURITY........................................ 49

14. USE OF CONTRACT DOCUMENTS AND INFORMATION ....................... 50

15. STANDARDS ................................................ 50

16. INSPECTION AND TESTS........................................ 51

17. WARRANTY ................................................. 51

18. DELAYS IN THE SUPPLIER’S PERFORMANCE .......................... 52

19. LIQUIDATED DAMAGES ......................................... 53

20. SETTLEMENT OF DISPUTES ...................................... 53

21. LIABILITY OF THE SUPPLIER .................................... 54

22. FORCE MAJEURE ............................................. 54

23. TERMINATION FOR DEFAULT ..................................... 54

24. TERMINATION FOR INSOLVENCY ................................... 55

25. TERMINATION FOR CONVENIENCE .................................. 55

26. TERMINATION FOR UNLAWFUL ACTS................................. 56

27. PROCEDURES FOR TERMINATION OF CONTRACTS ......................... 56

28. ASSIGNMENT OF RIGHTS........................................ 58

29. CONTRACT AMENDMENT ......................................... 58

30. APPLICATION ............................................... 58

44

1. Definitions

1.1. In this Contract, the following terms shall be interpreted as

indicated:

(a) “The Contract” means the agreement entered into between

the Procuring Entity and the Supplier, as recorded in the

Contract Form signed by the parties, including all

attachments and appendices thereto and all documents

incorporated by reference therein.

(b) “The Contract Price” means the price payable to the

Supplier under the Contract for the full and proper

performance of its contractual obligations.

(c) “The Goods” means all of the supplies, equipment,

machinery, spare parts, other materials and/or general

support services which the Supplier is required to provide

to the Procuring Entity under the Contract.

(d) “The Services” means those services ancillary to the

supply of the Goods, such as transportation and insurance,

and any other incidental services, such as installation,

commissioning, provision of technical assistance, training,

and other such obligations of the Supplier covered under the

Contract.

(e) “GCC” means the General Conditions of Contract contained

in this Section.

(f) “SCC” means the Special Conditions of Contract.

(g) “The Procuring Entity” means the organization purchasing

the Goods, as named in the SCC.

(h) “The Procuring Entity’s country” is the Philippines.

(i) “The Supplier” means the individual contractor,

manufacturer distributor, or firm supplying/manufacturing

the Goods and Services under this Contract and named in the

SCC.

(j) The “Funding Source” means the organization named in the

SCC.

(k) “The Project Site,” where applicable, means the place or

places named in the SCC.

(l) “Day” means calendar day.

(m) The “Effective Date” of the contract will be the date of

receipt by the Supplier of the Notice to Proceed or the date

provided in the Notice to Proceed. Performance of all

45

obligations shall be reckoned from the Effective Date of the

Contract.

(n) “Verified Report” refers to the report submitted by the

Implementing Unit to the Head of the Procuring Entity

setting forth its findings as to the existence of grounds or

causes for termination and explicitly stating its

recommendation for the issuance of a Notice to Terminate.

2. Corrupt, Fraudulent, Collusive, and Coercive Practices

2.1. Unless otherwise provided in the SCC, the Procuring Entity as

well as the bidders, contractors, or suppliers shall observe the

highest standard of ethics during the procurement and execution of

this Contract. In pursuance of this policy, the Procuring Entity:

(a) defines, for the purposes of this provision, the terms set

forth below as follows:

(i) "corrupt practice" means behavior on the part of

officials in the public or private sectors by which

they improperly and unlawfully enrich themselves,

others, or induce others to do so, by misusing the

position in which they are placed, and it includes the

offering, giving, receiving, or soliciting of anything

of value to influence the action of any such official

in the procurement process or in contract execution;

entering, on behalf of the Government, into any

contract or transaction manifestly and grossly

disadvantageous to the same, whether or not the public

officer profited or will profit thereby, and similar

acts as provided in Republic Act 3019.

(ii) "fraudulent practice" means a misrepresentation of

facts in order to influence a procurement process or

the execution of a contract to the detriment of the

Procuring Entity, and includes collusive practices

among Bidders (prior to or after bid submission)

designed to establish bid prices at artificial, non-

competitive levels and to deprive the Procuring Entity

of the benefits of free and open competition.

(iii) “collusive practices” means a scheme or arrangement

between two or more Bidders, with or without the

knowledge of the Procuring Entity, designed to

establish bid prices at artificial, non-competitive

levels.

(iv) “coercive practices” means harming or threatening to

harm, directly or indirectly, persons, or their

property to influence their participation in a

46

procurement process, or affect the execution of a

contract;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an

administrative proceedings or investigation or

making false statements to investigators in

order to materially impede an administrative

proceedings or investigation of the Procuring

Entity or any foreign government/foreign or

international financing institution into

allegations of a corrupt, fraudulent, coercive

or collusive practice; and/or threatening,

harassing or intimidating any party to prevent

it from disclosing its knowledge of matters

relevant to the administrative proceedings or

investigation or from pursuing such proceedings

or investigation; or

(bb) acts intended to materially impede the exercise

of the inspection and audit rights of the

Procuring Entity or any foreign

government/foreign or international financing

institution herein.

(b) will reject a proposal for award if it determines that the

Bidder recommended for award has engaged in any of the

practices mentioned in this Clause for purposes of competing

for the contract.

2.2. Further the Funding Source, Borrower or Procuring Entity, as

appropriate, will seek to impose the maximum civil, administrative

and/or criminal penalties available under the applicable law on

individuals and organizations deemed to be involved with any of

the practices mentioned in GCC Clause 2.1(a).

3. Inspection and Audit by the Funding Source

The Supplier shall permit the Funding Source to inspect the Supplier’s

accounts and records relating to the performance of the Supplier and to

have them audited by auditors appointed by the Funding Source, if so

required by the Funding Source.

4. Governing Law and Language

4.1. This Contract shall be interpreted in accordance with the laws of

the Republic of the Philippines.

47

4.2. This Contract has been executed in the English language, which

shall be the binding and controlling language for all matters

relating to the meaning or interpretation of this Contract. All

correspondence and other documents pertaining to this Contract

exchanged by the parties shall be written in English.

5. Notices

5.1. Any notice, request, or consent required or permitted to be given

or made pursuant to this Contract shall be in writing. Any such

notice, request, or consent shall be deemed to have been given or

made when received by the concerned party, either in person or

through an authorized representative of the Party to whom the

communication is addressed, or when sent by registered mail,

telex, telegram, or facsimile to such Party at the address

specified in the SCC, which shall be effective when delivered and

duly received or on the notice’s effective date, whichever is

later.

5.2. A Party may change its address for notice hereunder by giving the

other Party notice of such change pursuant to the provisions

listed in the SCC for GCC Clause 5.1.

6. Scope of Contract

6.1. The GOODS and Related Services to be provided shall be as

specified in Section VI. Schedule of Requirements.

6.2. This Contract shall include all such items, although not

specifically mentioned, that can be reasonably inferred as being

required for its completion as if such items were expressly

mentioned herein. Any additional requirements for the completion

of this Contract shall be provided in the SCC.

7. Subcontracting

7.1. Subcontracting of any portion of the Goods, if allowed in the

BDS, does not relieve the Supplier of any liability or obligation

under this Contract. The Supplier will be responsible for the

acts, defaults, and negligence of any subcontractor, its agents,

servants or workmen as fully as if these were the Supplier’s own

acts, defaults, or negligence, or those of its agents, servants or

workmen.

7.2. Subcontractors disclosed and identified during the bidding may be

changed during the implementation of this Contract, subject to

compliance with the required qualifications and the approval of

the Procuring Entity.

8. Procuring Entity’s Responsibilities

48

8.1. Whenever the performance of the obligations in this Contract

requires that the Supplier obtain permits, approvals, import, and

other licenses from local public authorities, the Procuring Entity

shall, if so needed by the Supplier, make its best effort to

assist the Supplier in complying with such requirements in a

timely and expeditious manner.

8.2. The Procuring Entity shall pay all costs involved in the

performance of its responsibilities in accordance with GCC Clause

6.

9. Prices

9.1. For the given scope of work in this Contract as awarded, all bid

prices are considered fixed prices, and therefore not subject to

price escalation during contract implementation, except under

extraordinary circumstances and upon prior approval of the GPPB in

accordance with Section 61 of R.A. 9184 and its IRR or except as

provided in this Clause.

9.2. Prices charged by the Supplier for Goods delivered and/orservices

performed under this Contract shall not vary from the prices

quoted by the Supplier in its bid, with the exception of any

change in price resulting from a Change Order issued in accordance

with GCCClause 29.

10. Payment

10.1. Payments shall be made only upon a certification by the Head of

the Procuring Entity to the effect that the Goods have been

rendered or delivered in accordance with the terms of this

Contract and have been duly inspected and accepted. Except with

the prior approval of the President no payment shall be made for

services not yet rendered or for supplies and materials not yet

delivered under this Contract. Ten percent (10%) of the amount of

each payment shall be retained by the Procuring Entity to cover

the Supplier’s warranty obligations under this Contract as

described in GCC Clause 17.

10.2. The Supplier’s request(s) for payment shall be made to the

Procuring Entity in writing, accompanied by an invoice describing,

as appropriate, the Goods delivered and/or Services performed, and

by documents submitted pursuant to the SCC provision for GCC

Clause 6.2, and upon fulfillment of other obligations stipulated

in this Contract.

10.3. Pursuant to GCC Clause 10.2, payments shall be made promptly by

the Procuring Entity, but in no case later than sixty (60) days

after submission of an invoice or claim by the Supplier.

49

10.4. Unless otherwise provided in the SCC, the currency in which

payment is made to the Supplier under this Contract shall be in

Philippine Pesos.

11. Advance Payment and Terms of Payment

11.1. Advance payment shall be made only after prior approval of the

President, and shall not exceed fifteen percent (15%) of the

Contract amount, unless otherwise directed by the President or in

cases allowed under Annex “D” of RA 9184.

11.2. For Goods supplied from abroad, the terms of payment shall be as

follows:

(a) On Contract Signature: Ten percent (10%) of the Contract

Price shall be paid within sixty (60) days from signing of

the Contract and upon submission of a claim and a bank

guarantee for the equivalent amount valid until the Goods

are delivered and in the form provided in Section VIII.

Bidding Forms.

(b) On Delivery: Seventy percent (70%) of the Contract Price

shall be paid to the Supplier within sixty (60) days after

the date of receipt of the Goods and upon submission of the

documents (i) through (vi) specified in the SCC provision on

Delivery and Documents.

(c) On Acceptance: The remaining twenty percent (20%) of the

Contract Price shall be paid to the Supplier within sixty

(60) days after the date of submission of the acceptance and

inspection certificate for the respective delivery issued by

the Procuring Entity’s authorized representative. In the

event that no inspection or acceptance certificate is issued

by the Procuring Entity’s authorized representative within

forty five (45) days of the date shown on the delivery

receipt the Supplier shall have the right to claim payment

of the remaining twenty percent (20%) subject to the

Procuring Entity’s own verification of the reason(s) for

the failure to issue documents (vii) and (viii) as described

in the SCC provision on Delivery and Documents.

11.3. All progress payments shall first be charged against the advance

payment until the latter has been fully exhausted.

12. Taxes and Duties

The Supplier, whether local or foreign, shall be entirely responsible

for all the necessary taxes, stamp duties, license fees, and other such

levies imposed for the completion of this Contract.

13. Performance Security

50

13.1. Within three (3) calendar days from receipt of the Notice of Award

from the Procuring Entity but in no case later than the signing of

the contract by both parties, the successful Bidder shall furnish

the performance security in any the forms prescribed in the ITB

Clause 34.2.

13.2. The performance security posted in favor of the Procuring Entity

shall be forfeited in the event it is established that the winning

bidder is in default in any of its obligations under the contract.

13.3. The performance security shall remain valid until issuance by the

Procuring Entity of the Certificate of Final Acceptance.

13.4. The performance security may be released by the Procuring Entity

and returned to the Supplier after the issuance of the Certificate

of Final Acceptance subject to the following conditions:

(a) There are no pending claims against the Supplier or the

surety company filed by the Procuring Entity;

(b) The Supplier has no pending claims for labor and materials

filed against it; and

(c) Other terms specified in the SCC.

13.5. In case of a reduction of the contract value, the Procuring Entity

shall allow a proportional reduction in the original performance

security, provided that any such reduction is more than ten

percent (10%) and that the aggregate of such reductions is not

more than fifty percent (50%) of the original performance

security.

14. Use of Contract Documents and Information

14.1. The Supplier shall not, except for purposes of performing the

obligations in this Contract, without the Procuring Entity’s

prior written consent, disclose this Contract, or any provision

thereof, or any specification, plan, drawing, pattern, sample, or

information furnished by or on behalf of the Procuring Entity.

Any such disclosure shall be made in confidence and shall extend

only as far as may be necessary for purposes of such performance.

14.2. Any document, other than this Contract itself, enumerated in GCC

Clause 14.1 shall remain the property of the Procuring Entity and

shall be returned (all copies) to the Procuring Entity on

completion of the Supplier’s performance under this Contract if

so required by the Procuring Entity.

15. Standards

The Goods provided under this Contract shall conform to the standards

mentioned in the Section VII. Technical Specifications; and, when no

applicable standard is mentioned, to the authoritative standards

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appropriate to the Goods’ country of origin. Such standards shall be

the latest issued by the institution concerned.

16. Inspection and Tests

16.1. The Procuring Entity or its representative shall have the right to

inspect and/or to test the Goods to confirm their conformity to

the Contract specifications at no extra cost to the Procuring

Entity.The SCC and Section VII. Technical Specifications shall

specify what inspections and/or tests the Procuring Entity

requires and where they are to be conducted. The Procuring Entity

shall notify the Supplier in writing, in a timely manner, of the

identity of any representatives retained for these purposes.

16.2. If applicable, the inspections and tests may be conducted on the

premises of the Supplier or its subcontractor(s), at point of

delivery, and/or at the goods’ final destination. If conducted

on the premises of the Supplier or its subcontractor(s), all

reasonable facilities and assistance, including access to drawings

and production data, shall be furnished to the inspectors at no

charge to the Procuring Entity. The Supplier shall provide the

Procuring Entity with results of such inspections and tests.

16.3. The Procuring Entity or its designated representative shall be

entitled to attend the tests and/or inspections referred to in

this Clause provided that the Procuring Entity shall bear all of

its own costs and expenses incurred in connection with such

attendance including, but not limited to, all traveling and board

and lodging expenses.

16.4. The Procuring Entity may reject any Goods or any part thereof that

fail to pass any test and/or inspection or do not conform to the

specifications. The Supplier shall either rectify or replace such

rejected Goods or parts thereof or make alterations necessary to

meet the specifications at no cost to the Procuring Entity, and

shall repeat the test and/or inspection, at no cost to the

Procuring Entity, upon giving a notice pursuant to GCC Clause 5.

16.5. The Supplier agrees that neither the execution of a test and/or

inspection of the Goods or any part thereof, nor the attendance by

the Procuring Entity or its representative, shall release the

Supplier from any warranties or other obligations under this

Contract.

17. Warranty

17.1. The Supplier warrants that the Goods supplied under the Contract

are new, unused, of the most recent or current models, and that

they incorporate all recent improvements in design and materials,

except when the technical specifications required by the Procuring

Entity provides otherwise.

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17.2. The Supplier further warrants that all Goods supplied under this

Contract shall have no defect, arising from design, materials, or

workmanship or from any act or omission of the Supplier that may

develop under normal use of the supplied Goods in the conditions

prevailing in the country of final destination.

17.3. In order to assure that manufacturing defects shall be corrected

by the Supplier, a warranty shall be required from the Supplier

for a minimum period specified in the SCC. The obligation for

the warranty shall be covered by, at the Supplier’s option,

either retention money in an amount equivalent to at least ten

percent (10%) of the final payment, or a special bank guarantee

equivalent to at least ten percent (10%) of the Contract Price or

other such amount if so specified in the SCC. The said amounts

shall only be released after the lapse of the warranty period

specified in the SCC; provided, however, that the Supplies

delivered are free from patent and latent defects and all the

conditions imposed under this Contract have been fully met.

17.4. The Procuring Entity shall promptly notify the Supplier in writing

of any claims arising under this warranty.Upon receipt of such

notice, the Supplier shall, within the period specified in the

SCC and with all reasonable speed, repair or replace the

defective Goods or parts thereof, without cost to the Procuring

Entity.

17.5. If the Supplier, having been notified, fails to remedy the

defect(s) within the period specified in GCC Clause 17.4, the

Procuring Entity may proceed to take such remedial action as may

be necessary, at the Supplier’s risk and expense and without

prejudice to any other rights which the Procuring Entity may have

against the Supplier under the Contract and under the applicable

law.

18. Delays in the Supplier’s Performance

18.1. Delivery of the Goods and/or performance of Services shall be made

by the Supplier in accordance with the time schedule prescribed by

the Procuring Entity in Section VI. Schedule of Requirements.

18.2. If at any time during the performance of this Contract, the

Supplier or its Subcontractor(s) should encounter conditions

impeding timely delivery of the Goods and/or performance of

Services, the Supplier shall promptly notify the Procuring Entity

in writing of the fact of the delay, its likely duration and its

cause(s). As soon as practicable after receipt of the Supplier’s

notice, and upon causes provided for under GCC Clause 22, the

Procuring Entity shall evaluate the situation and may extend the

Supplier’s time for performance, in which case the extension

shall be ratified by the parties by amendment of Contract.

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18.3. Except as provided under GCC Clause 22, a delay by the Supplier

in the performance of its obligations shall render the Supplier

liable to the imposition of liquidated damages pursuant to GCC

Clause 19, unless an extension of time is agreed upon pursuant to

GCC Clause 29 without the application of liquidated damages.

19. Liquidated Damages

Subject to GCC Clauses 18 and 22, if the Supplier fails to

satisfactorily deliver any or all of the Goods and/or to perform the

Services within the period(s) specified in this Contract inclusive of

duly granted time extensions if any, the Procuring Entity shall, without

prejudice to its other remedies under this Contract and under the

applicable law, deduct from the Contract Price, as liquidated damages,

the applicable rate of one tenth (1/10) of one (1) percent of the cost

of the unperformed portion for every day of delay until actual delivery

or performance. The maximum deduction shall be ten percent (10%) of the

amount of contract. Once the maximum is reached, the Procuring Entity

shall rescind the Contract pursuant to GCC Clause 23, without prejudice

to other courses of action and remedies open to it.

20. Settlement of Disputes

20.1. If any dispute or difference of any kind whatsoever shall arise

between the Procuring Entity and the Supplier in connection with

or arising out of this Contract, the parties shall make every

effort to resolve amicably such dispute or difference by mutual

consultation.

20.2. If after thirty (30) days, the parties have failed to resolve

their dispute or difference by such mutual consultation, then

either the Procuring Entity or the Supplier may give notice to the

other party of its intention to commence arbitration, as

hereinafter provided, as to the matter in dispute, and no

arbitration in respect of this matter may be commenced unless such

notice is given.

20.3. Any dispute or difference in respect of which a notice of

intention to commence arbitration has been given in accordance

with this Clause shall be settled by arbitration. Arbitration may

be commenced prior to or after delivery of the Goods under this

Contract.

20.4. In the case of a dispute between the Procuring Entity and the

Supplier, the dispute shall be resolved in accordance with

Republic Act 9285 (“R.A. 9285”), otherwise known as the

“Alternative Dispute Resolution Act of 2004.”

20.5. Notwithstanding any reference to arbitration herein, the parties

shall continue to perform their respective obligations under the

Contract unless they otherwise agree; and the Procuring Entity

shall pay the Supplier any monies due the Supplier.

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21. Liability of the Supplier

21.1. The Supplier’s liability under this Contract shall be as provided

by the laws of the Republic of the Philippines, subject to

additional provisions, if any, set forth in the SCC.

21.2. Except in cases of criminal negligence or willful misconduct, and

in the case of infringement of patent rights, if applicable, the

aggregate liability of the Supplier to the Procuring Entityshall

not exceed the total Contract Price, provided that this limitation

shall not apply to the cost of repairing or replacing defective

equipment.

22. Force Majeure

22.1. The Supplier shall not be liable for forfeiture of its performance

security, liquidated damages, or termination for default if and to

the extent that the Supplier’s delay in performance or other

failure to perform its obligations under the Contract is the

result of a force majeure.

22.2. For purposes of this Contract the terms “force majeure” and

“fortuitous event” may be used interchangeably. In this regard,

a fortuitous event or force majeure shall be interpreted to mean

an event which the Contractor could not have foreseen, or which

though foreseen, was inevitable. It shall not include ordinary

unfavorable weather conditions; and any other cause the effects of

which could have been avoided with the exercise of reasonable

diligence by the Contractor. Such events may include, but not

limited to, acts of the Procuring Entity in its sovereign

capacity, wars or revolutions, fires, floods, epidemics,

quarantine restrictions, and freight embargoes.

22.3. If a force majeure situation arises, the Supplier shall promptly

notify the Procuring Entity in writing of such condition and the

cause thereof. Unless otherwise directed by the Procuring Entity

in writing, the Supplier shall continue to perform its obligations

under the Contract as far as is reasonably practical, and shall

seek all reasonable alternative means for performance not

prevented by the force majeure.

23. Termination for Default

23.1. The Procuring Entity shall terminate this Contract for default

when any of the following conditions attends its implementation:

(a) Outside of force majeure, the Supplier fails to deliver orperform any or all of the Goods within the period(s)

specified in the contract, or within any extension thereof

granted by the Procuring Entity pursuant to a request made

by the Supplier prior to the delay, and such failure amounts

to at least ten percent (10%) of the contact price;

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(b) As a result of force majeure, the Supplier is unable to

deliver or perform any or all of the Goods, amounting to at

least ten percent (10%) of the contract price, for a period

of not less than sixty (60) calendar days after receipt of

the notice from the Procuring Entity stating that the

circumstance of force majeure is deemed to have ceased; or

(c) The Supplier fails to perform any other obligation under the

Contract.

23.2. In the event the Procuring Entity terminates this Contract in

whole or in part, for any of the reasons provided under GCC

Clauses 23 to 26, the Procuring Entity may procure, upon such

terms and in such manner as it deems appropriate, Goods or

Services similar to those undelivered, and the Supplier shall be

liable to the Procuring Entity for any excess costs for such

similar Goods or Services. However, the Supplier shall continue

performance of this Contract to the extent not terminated.

23.3. In case the delay in the delivery of the Goods and/or performance

of the Services exceeds a time duration equivalent to ten percent

(10%) of the specified contract time plus any time extension duly

granted to the Supplier, the Procuring Entity may terminate this

Contract, forfeit the Supplier's performance security and award

the same to a qualified Supplier.

24. Termination for Insolvency

The Procuring Entity shall terminate this Contract if the Supplier is

declared bankrupt or insolvent as determined with finality by a court of

competent jurisdiction. In this event, termination will be without

compensation to the Supplier, provided that such termination will not

prejudice or affect any right of action or remedy which has accrued or

will accrue thereafter to the Procuring Entity and/or the Supplier.

25. Termination for Convenience

25.1. The Procuring Entity may terminate this Contract, in whole or in

part, at any time for its convenience. The Head of the Procuring

Entity may terminate a contract for the convenience of the

Government if he has determined the existence of conditions that

make Project Implementation economically, financially or

technically impractical and/or unnecessary, such as, but not

limited to, fortuitous event(s) or changes in law and national

government policies.

25.2. The Goods that have been delivered and/or performed or are ready

for delivery or performance within thirty (30) calendar days after

the Supplier’s receipt of Notice to Terminate shall be accepted

by the Procuring Entity at the contract terms and prices. For

Goods not yet performed and/or ready for delivery, the Procuring

Entity may elect:

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(a) to have any portion delivered and/or performed and paid at

the contract terms and prices; and/or

(b) to cancel the remainder and pay to the Supplier an agreed

amount for partially completed and/or performed goods and

for materials and parts previously procured by the Supplier.

25.3. If the Supplier suffers loss in its initial performance of the

terminated contract, such as purchase of raw materials for goods

specially manufactured for the Procuring Entity which cannot be

sold in open market, it shall be allowed to recover partially from

this Contract, on a quantum meruit basis. Before recovery may be

made, the fact of loss must be established under oath by the

Supplier to the satisfaction of the Procuring Entity before

recovery may be made.

26. Termination for Unlawful Acts

26.1. The Procuring Entity may terminate this Contract in case it is

determined prima facie that the Supplier has engaged, before or

during the implementation of this Contract, in unlawful deeds and

behaviors relative to contract acquisition and implementation.

Unlawful acts include, but are not limited to, the following:

(a) Corrupt, fraudulent, and coercive practices as defined in

ITB Clause 4.1(a);

(b) Drawing up or using forged documents;

(c) Using adulterated materials, means or methods, or engaging

in production contrary to rules of science or the trade; and

(d) Any other act analogous to the foregoing.

27. Procedures for Termination of Contracts

27.1. The following provisions shall govern the procedures for

termination of this Contract:

(a) Upon receipt of a written report of acts or causes which may

constitute ground(s) for termination as aforementioned, or

upon its own initiative, the Implementing Unit shall, within

a period of seven (7) calendar days, verify the existence of

such ground(s) and cause the execution of a Verified Report,

with all relevant evidence attached;

(b) Upon recommendation by the Implementing Unit, the Head of

the Procuring Entity shall terminate this Contract only by a

written notice to the Supplier conveying the termination of

this Contract. The notice shall state:

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(i) that this Contract is being terminated for any of the

ground(s) afore-mentioned, and a statement of the acts

that constitute the ground(s) constituting the same;

(ii) the extent of termination, whether in whole or in

part;

(iii) an instruction to the Supplier to show cause as to why

this Contract should not be terminated; and

(iv) special instructions of the Procuring Entity, if any.

(c) The Notice to Terminate shall be accompanied by a copy of

the Verified Report;

(d) Within a period of seven (7) calendar days from receipt of

the Notice of Termination, the Supplier shall submit to the

Head of the Procuring Entity a verified position paper

stating why this Contract should not be terminated. If the

Supplier fails to show cause after the lapse of the seven

(7) day period, either by inaction or by default, the Head

of the Procuring Entity shall issue an order terminating

this Contract;

(e) The Procuring Entity may, at any time before receipt of the

Supplier’s verified position paper described in item (d)

above withdraw the Notice to Terminate if it is determined

that certain items or works subject of the notice had been

completed, delivered, or performed before the Supplier’s

receipt of the notice;

(f) Within a non-extendible period of ten (10) calendar days

from receipt of the verified position paper, the Head of the

Procuring Entity shall decide whether or not to terminate

this Contract. It shall serve a written notice to the

Supplier of its decision and, unless otherwise provided,

this Contract is deemed terminated from receipt of the

Supplier of the notice of decision. The termination shall

only be based on the ground(s) stated in the Notice to

Terminate;

(g) The Head of the Procuring Entity may create a Contract

Termination Review Committee (CTRC) to assist him in the

discharge of this function. All decisions recommended by

the CTRC shall be subject to the approval of the Head of the

Procuring Entity; and

(h) The Supplier must serve a written notice to the Procuring

Entity of its intention to terminate the contract at least

thirty (30) calendar days before its intended termination.

The Contract is deemed terminated if it is not resumed in

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thirty (30) calendar days after the receipt of such notice

by the Procuring Entity.

28. Assignment of Rights

The Supplier shall not assign his rights or obligations under this

Contract, in whole or in part, except with the Procuring Entity’s prior

written consent.

29. Contract Amendment

Subject to applicable laws, no variation in or modification of the terms

of this Contract shall be made except by written amendment signed by the

parties.]

30. Application

These General Conditions shall apply to the extent that they are not

superseded by provisions of other parts of this Contract.

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Section V. Special Conditions ofContract

Notes on the Special Conditions of Contract

Similar to the BDS, the clauses in this Section are intended to assist

the Procuring Entity in providing contract-specific information in

relation to corresponding clauses in the GCC.

The provisions of this Section complement the GCC, specifying contractual

requirements linked to the special circumstances of the Procuring Entity,

the Procuring Entity’s country, the sector, and the Goods purchased. In

preparing this Section, the following aspects should be checked:

(a) Information that complements provisions of Section IV must be

incorporated.

(b) Amendments and/or supplements to provisions of Section IV, as

necessitated by the circumstances of the specific purchase, must

also be incorporated.

However, no special condition which defeats or negates the general intent

and purpose of the provisions of Section IV should be incorporated

herein.

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Special Conditions of ContractGCC Clause

1.1(g) The Procuring Entity is DEPARTMENT OF AGRICULTURE, RFU 10.

1.1(i) The Supplier is [TO BE INSERTED AT THE TIME OF CONTRACT

AWARD].

1.1(j) The Funding Source is the Government of the Philippines

(GOP) through AGRI-PINOY RICE PROGRAM CY 2013 in the amount

of SEVEN MILLION EIGHT HUNDRED THOUSAND PESOS 00/00

(Php7,475,000.00).

1.1(k) The Project Site is in Malaybalay City, Bukidnon & Baungon,

Bukidnon . For multiple sites state “TheProject sites are

defined in Section VI. Schedule of Requirements”]

5.1 The Procuring Entity’s address for Notices is:

Department of Agriculture-Regional Office 10

RTD CONSTANCIO C. MAGHANOY, JR.

Chair- Bids and Awards Committee

Department of Agriculture-Regional Office 10

Antonio Luna St., Cagayan de Oro City

PABX: (088) 856-2753 to 55

www.cagayandeoro.da.gov.ph

The Supplier’s address for Notices is: [INSERT ADDRESS

INCLUDING, NAME OF CONTACT, FAX AND TELEPHONE NUMBER]

6.2 List here any additional requirements for the completion of

this Contract. The following requirements and the

corresponding provisions may be deleted, amended, or

retained depending on its applicability to this Contract:

Delivery and Documents –

For purposes of the Contract, “EXW,” “FOB,” “FCA,”

“CIF,” “CIP,” “DDP” and other trade terms used to

describe the obligations of the parties shall have the

meanings assigned to them by the current edition of

INCOTERMS published by the International Chamber of

Commerce, Paris. The Delivery terms of this Contract shall

be as follows:

For Goods Supplied from Abroad, state “The delivery terms

applicable to the Contract are DDP delivered [insert place

of destination]. In accordance with INCOTERMS.”

For Goods Supplied from Within the Philippines, state “The

delivery terms applicable to this Contract are delivered

NINETY (90) CALENDAR DAYS. Risk and title will pass from the

Supplier to the Procuring Entity upon receipt and final

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acceptance of the Goods at their final destination.”

Delivery of the Goods shall be made by the Supplier in

accordance with the terms specified in Section VI. Schedule

of Requirements. The details of shipping and/or other

documents to be furnished by the Supplier are as follows:

For Goods supplied from within the Philippines:

Upon delivery of the Goods to the Project Site, the Supplier

shall notify the Procuring Entity and present the following

documents to the Procuring Entity:

(i) Original and four copies of the Supplier’s invoice

showing Goods’ description, quantity, unit price, and

total amount;

(ii) Original and four copies delivery receipt/note,

railway receipt, or truck receipt;

(iii) Original Supplier’s factory inspection report;

(iv) Original and four copies of the Manufacturer’s and/or

Supplier’s warranty certificate;

(v) Original and four copies of the certificate of origin

(for imported Goods);

(vi) Delivery receipt detailing number and description of

items received signed by the authorized receiving

personnel;

(vii) Certificate of Acceptance/Inspection Report signed by

the Procuring Entity’s representative at the Project

Site; and

(viii)Four copies of the Invoice Receipt for Property signed

by the Procuring Entity’s representative at the

Project Site.

For Goods supplied from abroad:

Upon shipment, the Supplier shall notify the Procuring

Entity and the insurance company by cable the full details

of the shipment, including Contract Number, description of

the Goods, quantity, vessel, bill of lading number and date,

port of loading, date of shipment, port of discharge etc.

Upon delivery to the Project Site, the Supplier shall notify

the Procuring Entity and present the following documents as

applicable with the documentary requirements of any letter

of credit issued taking precedence:

(i) Original and four copies of the Supplier’s invoice

showing Goods’ description, quantity, unit price, and

total amount;

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(ii) Original and four copies of the negotiable, clean

shipped on board bill of lading marked “freight pre-

paid” and five copies of the non-negotiable bill of

lading ;

(iii) Original Supplier’s factory inspection report;

(iv) Original and four copies of the Manufacturer’s and/or

Supplier’s warranty certificate;

(v) Original and four copies of the certificate of origin

(for imported Goods);

(vi) Delivery receipt detailing number and description of

items received signed by the Procuring Entity’s

representative at the Project Site;

(vii) Certificate of Acceptance/Inspection Report signed by

the Procuring Entity’s representative at the Project

Site; and

(viii)Four copies of the Invoice Receipt for Property signed

by the Procuring Entity’s representative at the

Project Site.

For purposes of this Clause the Procuring Entity’s

Representative at the Project Site is ENGR. REMEGIO RELLITA

Incidental Services –

The Supplier is required to provide all of the following

services, including additional services, if any, specified

in Section VI. Schedule of Requirements:

(a) performance or supervision of on-site assembly and/or

start-up of the supplied Goods;

(b) furnishing of tools required for assembly and/or

maintenance of the supplied Goods;

(c) furnishing of a detailed operations and maintenance

manual for each appropriate unit of the supplied

Goods;

(d) performance or supervision or maintenance and/or

repair of the supplied Goods, for a period of time

agreed by the parties, provided that this service

shall not relieve the Supplier of any warranty

obligations under this Contract; and

(e) training of the Procuring Entity’s personnel, at the

Supplier’s plant and/or on-site, in assembly, start-

up, operation, maintenance, and/or repair of the

supplied Goods.

The Contract price for the Goods shall include the prices

charged by the Supplier for incidental services and shall

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not exceed the prevailing rates charged to other parties by

the Supplier for similar services.

Spare Parts –

The Supplier is required to provide all of the following

materials, notifications, and information pertaining to

spare parts manufactured or distributed by the Supplier:

Select appropriate requirements and delete the rest.

(a) such spare parts as the Procuring Entity may elect to

purchase from the Supplier, provided that this

election shall not relieve the Supplier of any

warranty obligations under this Contract; and

(b) in the event of termination of production of the spare

parts:

i. advance notification to the Procuring Entity of

the pending termination, in sufficient time to

permit the Procuring Entity to procure needed

requirements; and

ii. following such termination, furnishing at no

cost to the Procuring Entity, the blueprints,

drawings, and specifications of the spare parts,

if requested.

The spare parts required are listed in Section VI. Schedule

of Requirements and the cost thereof are included in the

Contract Price

The Supplier shall carry sufficient inventories to assure

ex-stock supply of consumable spares for the Goods for a

period of [insert here the time period specified. If not

used insert time period of three times the warranty period].

Other spare parts and components shall be supplied as

promptly as possible, but in any case within [insert

appropriate time period] months of placing the order.

Packaging –

The Supplier shall provide such packaging of the Goods as is

required to prevent their damage or deterioration during

transit to their final destination, as indicated in this

Contract. The packaging shall be sufficient to withstand,

without limitation, rough handling during transit and

exposure to extreme temperatures, salt and precipitation

during transit, and open storage. Packaging case size and

weights shall take into consideration, where appropriate,

the remoteness of the GOODS’ final destination and the

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absence of heavy handling facilities at all points in

transit.

The packaging, marking, and documentation within and outside

the packages shall comply strictly with such special

requirements as shall be expressly provided for in the

Contract, including additional requirements, if any,

specified below, and in any subsequent instructions ordered

by the Procuring Entity.

The outer packaging must be clearly marked on at least four

(4) sides as follows:

Name of the Procuring Entity

Name of the Supplier

Contract Description

Final Destination

Gross weight

Any special lifting instructions

Any special handling instructions

Any relevant HAZCHEM classifications

A packaging list identifying the contents and quantities of

the package is to be placed on an accessible point of the

outer packaging if practical. If not practical the packaging

list is to be placed inside the outer packaging but outside

the secondary packaging.

Insurance –

The Goods supplied under this Contract shall be fully

insured by the Supplier in a freely convertible currency

against loss or damage incidental to manufacture or

acquisition, transportation, storage, and delivery. The

Goods remain at the risk and title of the Supplier until

their final acceptance by the Procuring Entity.

Transportation –

Where the Supplier is required under Contract to deliver the

Goods CIF, CIP or DDP, transport of the Goods to the port of

destination or such other named place of destination in the

Philippines, as shall be specified in this Contract, shall

be arranged and paid for by the Supplier, and the cost

thereof shall be included in the Contract Price.

Where the Supplier is required under this Contract to

transport the Goods to a specified place of destination

within the Philippines, defined as the Project Site,

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transport to such place of destination in the Philippines,

including insurance and storage, as shall be specified in

this Contract, shall be arranged by the Supplier, and

related costs shall be included in the Contract Price.

Where the Supplier is required under Contract to deliver the

Goods CIF, CIP or DDP, Goods are to be transported on

carriers of Philippine registry. In the event that no

carrier of Philippine registry is available, Goods may be

shipped by a carrier which is not of Philippine registry

provided that the Supplier obtains and presents to the

Procuring Entity certification to this effect from the

nearest Philippine consulate to the port of dispatch. In the

event that carriers of Philippine registry are available but

their schedule delays the Supplier in its performance of

this Contract the period from when the Goods were first

ready for shipment and the actual date of shipment the

period of delay will be considered force majeure in

accordance with GCC Clause 22.

The Procuring Entity accepts no liability for the damage of

Goods during transit other than those prescribed by

INCOTERMS for DDP Deliveries. In the case of Goods supplied

from within the Philippines or supplied by domestic

Suppliers risk and title will not be deemed to have passed

to the Procuring Entity until their receipt and final

acceptance at the final destination.

Patent Rights –

The Supplier shall indemnify the Procuring Entity against

all third party claims of infringement of patent, trademark,

or industrial design rights arising from use of the Goods or

any part thereof.

10.4 Maintain the GCC Clause and state here “Not applicable” or

if procurement involves a foreign-denominated bid, state

"Payment shall be made in [insert currency].

13.4(c) Specify additional conditions, if any, that must be met

prior to the release of the performance security, otherwise,

state Posting of Warranty in the form of Special Bank

Guarantee which is 10% of the Contract Price, valid for One

(1) year.

16.1 The inspections and tests that will be conducted are:

1.MUST HAVE COUPLED AMTEC TEST THE WHOLE SYSTEM

2.CONDUCT ACTUAL DEMO

17.3 If the Goods pertain to Expendable Supplies: Three (3)

months after acceptance by the Procuring Entity of the

delivered Goods or after the Goods are consumed, whichever

66

is earlier.

IF THE GOODS PERTAIN TO NON-EXPENDABLE SUPPLIES: ONE (1)

YEAR AFTER ACCEPTANCE BY THE PROCURING ENTITY OF THE

DELIVERED GOODS.

17.4 The period for correction of defects in the warranty period

is THREE (3) DAYS.

21.1 State here “No additional provision.” or, if the Supplier

is a joint venture, “All partners to the joint venture

shall be jointly and severally liable to the Procuring

Entity.”

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Section VI. Schedule of Requirements

The delivery schedule expressed as weeks/months stipulates hereafter a

delivery date which is the date of delivery to the project site.

Item

Number

Description Quantity Delivered,

Weeks/Months

Agency Supplier/

Bidder

1.

2.

BID LOT I:VILLAGE TYPE GRAIN/RICEPOSTHARVEST PROCESSING CENTER

COMPONENT I = MULTI PASS RICE MILL

COMPONENT II = CONSTRUCTION OFWAREHOUSE

COMPONENT III = RECIRCULATINGDRYER

BID LOT II:REHABILITATION AND RETROFITTING OFBIOMASS FURNACE TO EXISTINGRECIRCULATING MECHANICAL DRYER

2 UNITS

2 UNITS

2 UNITS

1 UNIT

90CALENDARDAYS

NOTE: 1. AFTER SALES SERVICE (AFTER ONE (1) YEAR WARRANTY PERIOD):

i. Response time to provide services is within 72 hours or 3 days

ii. Should have Service Center within the Region and neighboring

regions

2. CONDUCT ACTUAL DEMO

DELIVERY SITES:

1. 2 UNITS VILLAGE TYPE GRAIN/RICE POSTHARVEST PROCESSING CENTER

KULAMAN IA, MALAYBALAY CITY, BUKIDNON - 1 UNIT

LGU BAUNGON, BUKIDNON - 1 UNIT

2. 1 UNIT REHABILITATION AND RETROFITTING OF BIOMASS FURNACE

MANAGOK IA, MALAYBALAY CITY, BUKIDNON

_____________________________________________________

Name of Company/Firm

___________________________

Authorized Signature over Printed Name

___________

Date

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69

Section VII. Technical Specifications

Qty. Description Statement of Compliance

2 UNITS

BID LOT I:VILLAGE TYPE GRAIN/RICE POSTHARVESTPROCESSING CENTER:

COMPONENT I: MULTI PASS RICE MILLMinimum Technical Specifications:

Milling Capacity: 1 ton/hr (Output) at 98% purityMilling Recovery: 65%Drive: Independent Electric Motor, 3 phase 220 volts

1 lot Pre-cleaning System:comprising of concrete loading bin with excavated pitfor the installation of one unit Paddy Pre-cleaner,oscillating type, complete with dust suction blower andcyclone dust collector.

1 unit Rubber roll huller:with 6"x8" Rubber roll, complete with hopper andwinnower mounted on a common steel basestructure with appropriate electric motor, 5 hp

1 unit Gravity or Paddy Separator:tray type, 2 layers minimum, complete withwinnower and control tank, driven by2 hp electric motor

Material:Dimension:1 unit Steel Rice Box:with holding capacity minimum of 0.2 Tons (200kgs.) Rice, complete with stand and dischargeport with control, Discharging direct to sack ontop of weighing scale

Whitener/Twin polisher:1 unit Whitener (abrasive/friction type) - verticalarrangement, grains passing one after theother in one unit assembly mounted on a steelbase structure driven by 10 hp electric motor

1 unit De-stoner:mounted on steel base structure driven by 0.5 hpelectric motor

1 unit Brewer (Binlid) Sifter:Brewer (Binlid) Sifter, oscillating type, completewith eccentric drive and mounted basedriven by a 0.5 hp electric motor

1 set Bucket Elevator System:Complete setSteel bucket elevators, complete with reducers,buckets and pulleys, with appropriateelectric motor each for Paddy Pre-Cleaner;Rubber Huller; Gravity Separator; Stoner

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2 UNITS

and Rice Box driven by 4 units 1 hp electric motor

1 lot Assorted Ancillary Parts:Assorted ancillary parts, comprising of elevatorspouts, V and Flat Belts drive, catwalksteel structure and husk exhaust ducts and controlpanel board.

1 lot Electrical Materials:for electric motor connections comprising of wireconduits and fittings are included.

1 unit Electric Control Panel:for easy operation.

1 unit Rice Hull Bin:Dimension:7.87' x 7.87' x 3.94' (2.4m x 2.4m x 1.2m)Material:G.I Sheet (1.2 mm thick)With angle bar frame:2" x 4/25" (51mm x 4mm)With steel column

With Agri-pinoy Logo:Size-7.62cm x 15.24cm / 3"x6" in the separator,bucket elevator & contorl panel

With complete set of heavy duty tools forregular operation and maintenance, whichinclude the following:1 set combination wrench, 8" (20.32 cm) - 24"(60.96 cm)1 pc mechanical plier, 8" (20.32 cm)1 pc tool box1 pc adjustible wrench, 10" (25.4 cm)

COMPONENT II:CONSTRUCTION OF WAREHOUSE

Concrete type warehouse w/ downspout and ventilationwindowFloor area: 6.0m x 12.0m x 7.5m ht.Office area: 2.0m x 3.0m x 3.0m ht.

I. Excavation 20.75 cu.m.II. Formworks and Scaffolding 800.00 bd.ft.III. Concrete Works 19.46 cu.m.IV. Masonry Works 240.00 sq.m.V. Steel Works 1266.40 kgsVI. Carpentry Works 47.50 bd.ft.VII.Roofing Works 100.50 sq.m.VIII. Painting Works 485.50 sq.m.(Including Agri-pinoy Logo visible at entrance)IX. Doors and Windows 1.00 lotX. Electrical Installation 1.00 lot

(inside the building)

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note: Service Entrance Wire from Post toBuilding(Warehouse), kW-HR Meter,Transformers at 100KVA (three-phase system),Outside Building Transmission Lines shall beprovided by the Farmer Beneficiary as their equityfor the project.

Others:- Provision of complete operating manual andbrochure for the machine- Should have Coupled AMTEC Test Results forMulti Pass Rice Mill- Should conform with PAES- Warranty certificate:

a. Supplier shall issue certificate ofwarranty inclusive of labor and materials,

Warranty Certificate for all componentelectric motor - 1 year

b. Warranty period shall start a day afterthe unit has been accepted based on theCertificate of Acceptance.

c. Upon the issue of the Certificate ofCompletion, the Certification shall not relieve thecontractor from his obligation and responsibilitiesin undertaking repair works on any defects orfailure that may occur in any section of the projectduring one year warranty from the date ofcompletion of the project.

- The supplier/distributor/dealer must have anaccredited services center within the region andcan provide response within 72 hours for aftersales services.

- Performance evaluation must yield besteconomic results tests:

a. Fuel Consumptionb. Capacityc. Manpower Requirements

Condition of the procurements:1. Winning bidder shall install/construct the unit onsite on respective farmer beneficiary withinRegion 10.

2. Technical Inspection, Testing, Evaluation andAcceptance Report.

a. Technical inspection – covers thephysical completeness ( complete on machine,electric motors and accessories, and physicalaccomplishment for the warehouse) of theinstalled item in conformity with PAES Standardon workmanship and finished and within theminimum specified technical specification.

b. Testing and Evaluation Report - to beconducted by Technical Staff of the implementingagencies of which the results shall conform withthe specified performance criteria stipulated in theTechnical Specification.

c. Acceptance Report – ConcernedFarmer Beneficiary shall accept the unit

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2 UNITS

3. Testing Parameters:a. Minimum of One(1) hour dry run

testingb. The Supplier in coordination with the

Farmer beneficiary shall prepare the testingmaterials of at least 30 cavans of palay

C. BATCH RECIRCULATING DRYER (WITHMULTI-FUEL BIOMASS FURNACE

(Component of Village-type Grain PostharvestProcessing Center)

Minimum Specifications:A. Batch Recirculating Grain Dryer

6 tons wet palay @ 28% moisture content

● Elevator capacity12 tons/hr @ 28% moisture content

● Minimum drying rate1.2%/hr from 28%MC to 14%FMC

● Drying air temperature: 40 to 80 deg C● Dryer type: batch recirculating● Power supply: 220 volt, single phase● Moisture gradient *: 2% maximum

●Product quality*o Cracked grain, % Increase

5% maximumo Head rice, % decrease

5% maximumo Hulled/damaged grain

3% maximum% increase

● Heating system efficiency(as per PAES201:2000 standard)-50% minimum

● With dust collection system● With bagging chute

B. Biomass Furnace● Type: indirect-fired

● Fuel: multi-fuel (preferably ricehull/corncobs)● Feeding System: automatic● Temperature control : with temp controller● Power requirement : 1 hp maximum (electric

motor)

● With ash box or ash cart● Heating system efficiency: 50% minimum *

C. Others● With reflectorized Agri-pinoy logo: Size-7.62cmx 15.24cm / 3"x 6"

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Condition of the procurements:1. Winning bidder shall deliver the unit on site oneach respective farmer beneficiaries withinRegion 10.

2. Technical Inspection, Testing, Evaluation andAcceptance Report.

a. Technical inspection – covers the physicalcompleteness ( complete accesories ) of thedelivered item with conformity to PAES Standardon; workmanship and finished and within theminimum specified technical specification.

b. Testing and Evaluation Report - to beconducted by Technical Staff of the implementingagencies of which the results shall conform withthe specified performance criteria stipulated inthe Technical Specification.

c. Acceptance Report – Concerned FarmerBenefeciary shall accept the unit.

3. Testing Parameters:a. Supplier shall provide the testing

materials; at least 40 bags of Palay/Corns grains,at least 10-12 bags of rice hull

1. Provision of 1 day cluster TrainingSeminar ( inclusive to technical training on theoperation and maintenance and hands-on trainingon the operation to be conducted by the supplierin collaboration with the technical staff from DARFU, Philrice and PhilMech.

Counterparting Scheme/Method of Payments (LotI):A. Eligible Counterpart:

1.DA shall provide the facility cost amounting toPhP4,200,000.00.

B. Ineligible Counterpart:1.Service Entrance Wire from Post to

Building(Warehouse), kW-HR Meter,Transformers at 100KVA (three-phasesystem),Outside Building Transmission Linesshall be provided by the Farmer Beneficiary astheir equity for the project.

2.The qualified Cooperator shall be a dulyregistered Farmer's Association (FA) engaged inrice farming with SEC/CDA/DOLE Registrationwith atleast 100 hectares service area;

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1 unit

3.The Cooperator shall enter into amemorandum of agreement under acounterparting scheme and shall provide anequity in the form of lot (2000sq.m), sitedevelopment expenses (i.e land filling, clearing,leveling, compacting, and fencing) and operatingcost amounting to a minimum ofPhp1,000,000.00.

4.The Cooperator shall be willing to provideoperators and should be available to undergotraining for the operation and maintenance of thefacility.

LOT II: Rehabilitation and retrofitting ofBiomass Furnace to Existing RecirculatingMechanical Dryer(Counterparting Scheme 85: 15%)

Shall cover repair of existing recirculating 6 tonscapacity mechanical dryerre-wiring of electrical system, fixing of controlpanel, cleaning of elevator shaft/ grain,caps and make the system operational asrequired

Minimum Specifications:a. Multi Fuel Biomass- fed Furnace

● The PhilMech Furnace is an indirect-fired typeof furnace using horizontal heat exchanger madeof 2.9mm thick x 2’ fire tubes

● The main furnace is made of refractory bricks atleast SK-32 with single feeding augers designatedfor both corn cobs and rice hull as fuel

● Ash disposal is gravity type from ash auger toash trolley with minimum dimension of 3’ x 2’ x1’(LxWx H)

● Primary air blower is also belt driven by ½HpTEFC motor resulting to at least 500 cfm

● A ½ Hp single phase motor (TEFC) connectedto the speed reducer resulting to about 8-10 rpmof feed augers.

● Flue gas passes through the fire tubes and intoa 10 inch diameter x 26 feet chimney at the otherend of the heat exchanger made of G.I. sheethaving thickness equivalent to not less thangauge 16.

● Ambient air is heated by passing across theoutside of the fire tubes and into the dryer inlet.

● A PID temperature controller automaticallycontrols the feeding augers to maintain the dryingtemperature at a pre-set value.

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● The furnace can supply heat for up to 10, 000cfm airflow rate at a temperature 80 °C.

● Fuel feed rate is about 43 kg/hr corn cobs and60 kg/hr rice hull at 70 °C drying air temperatureand 10, 000cfm airflow rate.

● Power requirement is 1.5 hp , 220 V singlephase electric motor, 60 Hz

● It is suitable to supply clean hot air for a 6-tonflatbed dryer or a 6-ton re-circulating dryer.

● Provision of hinge cover at the ash discharge ofthe combustion chamber.

● Ducting, line ducting for single MechanicalDryer

● With provision of cleaning rod, ¾” GI Pipesched. 40, steel brush

● With reflectorized Agri-pinoy Logo: Size-7.62cmx 15.24cm / 3"x 6"

Material Specification:● Power requirement:220 v, 1.5 hp , single phase electric motors

● Heating system: Indirect- fired

● Heat exchanger materials:Fire tubes, 2½” diameter, 20 ft long ( 20 pcs.)Refractory Bricks with hole , 9”x4.5”x2.5” ( 31pcs.)

Refractory bricks without hole 9”x4.5”x2.5” ( 180pcs)Molded with Refractory bricks mortar/grout,cement

Covered with 10 mm thick MS plate

● Main Frame and Siding materials- welding ofsteel plates as cover:

- 4 mm thick MS plate – Combustion, Burningchamber, Fuel hopper

-2 mm thick MS plate - Heat Exchanger

-1.5 mm thick MS plate – Inspection chamber ,Chimney, ash collection trap

-1.2 mm thick MS plate – Hot-air outlet, ducting

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material

● Burning Chamber:Welding of combination of angle bars sizesranges from

1/4” x 2½” x 2½” angle bar1/6” x 2½” x 2½” angle bar3/16” x 1½” x 1½” angle bar1/8” x 1½” x 1½” angle bar1/8” x 2” x 2” angle bar1/4” x 2” x 2” angle bar1/8” x 1” x1½” angle bar1/4” x 1½” x 1½” angle bar

● Feeding and Ash Disposal Auger:¼”x 1 ¾” flat bar¼”x 1 ¼” flat bar6 mm diameter RSB1” G.I Pipe Sch. 404” diameter pipe6” diameter pipe

● Blower/ Ducting:1” diameter pipe sched. 401 ¼” diameter BI pipe sched 401 ¼” diameter pipe sched 803/8”x 1 ½” bolts and nuts with flat washer

● Chimney and Ash collection trap - Doomer DrillBit

● Mounting/Assembly Fuel Feeder and AshDisposal System:

Ash disposal trolley - (LXWXH) – 3”x2”x1”F207 flange bearing, P205 pillow block# 30 standard chain12 teeth x 40 sprocket22 teeth x 40 sprocket1:60 speed reducer3” diameter pulley ( single V- belt)6” diameter pulley ( single V- belt)45” V- belt1- phase, ½ Hp electric motor2 ½” diameter roller4” centrifugal blower10 teeth bevel gear16 teeth bevel gear

● Installation of electrical and control Panel:Temperature controller – PID- ProportionalIntegral Derivative

● controller that controls the feeding auger tomaintain a set temperature:Push button switchMagnetic contactor w/ overload relayWiring and others ( 3.5 mm THW)Control box - PaintingEpoxy primer gray,Epoxy paint, Putty, Putty knife,

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Acrylic thinner

Should conform with PAES

● With coupled AMTEC Test Results

● The supplier/distributor/dealer must have anaccredited services center within the region andcan provide response within 72 hours for aftersales services.

● Performance evaluation must yield besteconomic results tests in drying efficiency.

DETAILED WORK ACTIVITIES:1. Multi- Fuel Biomass Mass Furnace:

- Fabrication and installation including ductingto installed and connect to existing recirculating,6 tons capacity mechanical dryer

2. Mechanical Dryer (2 unit - 6 tons capacity):Existing- needs minor repair* Re-wiring of electrical system* Fixing of control panel* Cleaning/ fixing of elevator shaft/ grain caps* Fix other component and make the systemoperational as required.

Condition/Requirements of ProspectiveBidders:1. Must be a PhilMech- Accredited,fabricator/manufacturer of Mechanical DryerRetrofitting ( Bio-Mass Fed Furnace ).

2. Warranty certificate:a. Supplier shall issued certificate of warranty

inclusive to labor and spare parts,Warranty Certificate for prime mover/

engine and spare parts - 1 yearb. Warranty period shall start a day after the

unit has been accepted base on the Certificate ofAcceptance.

3. With Reflectorized DA Logo, 3"x 6"

4. With standard heavy duty tools and provision ofoperating manual for the unit and brochure of theengine. Standard heavy duty tools include thefollowing:

2 pcs. Screw driver, flat screw and philipsscrew

1 pc. Open wrench 10 x 11 mm1 pc Open wrench 12x 14mm1 pc open wrench 14x 17 mm1 pc open wrench 19 x 21 mm1 pc. Holder of tools1 pc mechanical plier 6"1 pc adjustable wrench 12"

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5. Should have coupled AMTEC Test Results6. Should conform with PAES

Condition of the procurements:1. Winning bidder shall deliver the unit on siteon each respective farmer benefeciaries withinRegion 10.

2. Technical Inspection, Testing, Evaluation andAcceptance Report.

a. Technical inspection – covers the physicalcompleteness ( complete accesories ) of thedelivered item with conformity with PAESStandard on workmanship and finished andwithin the minimum specified technicalspecification.

b. Testing and Evaluation Report - to beconducted by Technical Staff of the implementingagencies of which the results shall conformswith the specified performance criteria stipulatedin the Technical specification.

c. Acceptance Report – Concerned FarmerBenefeciary shall accept the unit

3. Testing Parameters:a. Minimum of 1 hour dry run testing.b.The supplier in coordination with the farmer

beneficiary shall prepare the testing material of atleast 30 cavans of palay.

Method of Payments/Counterparting Scheme (LotII):A. Eligible Counterpart:

1.The DA RFU 10 shall bid the total projectcost in the Approved Budget for the Contract ofthe said project, such that the DA RFU 10 shallprovide/pay only 85% of the awarded/bidded costto the winning bidder which payment will be madeafter the delivery, actual testing and evaluationconducted and eventual acceptance of the farmerbeneficiary.

2.The 15% of the awarded/bidded cost shall bepaid by the farmer beneficiary as their counterpartupon completion of the project. The said 15%payments of farmers counterpart shall be paiddirectly to the winning bidder on or before the thecompletion of the retrofitting or whateveragreement the supplier and farmer benefeciaryagreed on.

B.Ineligible Counterpart:1.The qualified Cooperator shall be a duly

registered Farmer's Association (FA) engaged inrice production;

2.Rehabilitation of Batch Recirculating Dryer(BRD) shall cover the repair of all BRDsdistributed by the government being managed bythe FAs and LGUs.

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___________________________________________

Name of Company/Firm

________________________________

Authorized Signature Over Printed Name

_________

Date

80

Section VIII. Bidding Sample Forms

1. STATEMENT OF ONGOING SIMILAR GOVERNMENT AND PRIVATE CONTRACTS WITHIN THE

PERIOD 2 YEARS, INCLUDING CONTRACTS AWARDED BUT NOT YET STARTED.

2. STATEMENT OF SIMILAR COMPLETED GOVERNMENT AND PRIVATE CONTRACTS WITHIN THE

PERIOD OF 2 YEARS.

3. FINANCIAL DOCUMENTS FOR ELIGIBILITY CHECK (NFCC)

4. CREDIT LINE CERTIFICATE

3. OMNIBUS SWORN STATEMENT

4. BID FORM

5. BANK GUARANTEE FORM FOR ADVANCE PAYMENT

6. PERFORMANCE SECURITY (BANK GUARANTEE)

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FINANCIAL DOCUMENTS FOR ELIGIBILITY CHECK

A. Summary of the Applicant Supplier’s/Distributor’s/Manufacturer’s assets

and liabilities on the basis of the attached income tax return and audited

financial statement, stamped “RECEIVED” by the Bureau of Internal Revenue

or BIR authorized collecting agent, for the immediately preceding year and

a certified copy of Schedule of Fixed Assets particularly the list of

construction equipment.

Year 20__

1. Total Assets

2. Current Assets

3. Total Liabilities

4. Current Liabilities

5. Net Worth (1-3)

6. Net Working Capital (2-4)

B. The Net Financial Contracting Capacity (NFCC) based on the above data is

computed as follows:

NFCC = K [current asset – current liabilities] minus value of all

outstanding works under ongoing contracts including awarded contracts yet

to be started

NFCC = P _______________________________________

K = 10 for a contract duration of one year or less, 15 for more than one

year up to two years and 20 for more than two years

or

Commitment from a licensed bank to extend to it a credit line if awarded

the contract in the amount of at least 10% of the proposed project to bid.

Name of Bank: ________________________________ Amount: ___________________

Herewith attached are certified true copies of the income tax return and

audited financial statement: stamped “RECEIVED” by the BIR or BIR authorized

collecting agent for the immediately preceding year and the cash deposit

certificate or certificate of commitment from a licensed bank to extend a

credit line.

Submitted by:

________________________________________

Name of Supplier / Distributor / Manufacturer

_________________________________________ Date : _______________

Signature of Authorized Representative

NOTE:1. If Partnership or Joint Venture, each Partner or Member Firm of Joint Venture shall submit the above

requirements.

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CREDIT LINE CERTIFICATE

Date:__________________

LEALYN A. RAMOS

Regional Executive Director

Department of Agriculture RFU10

CONTRACT/PROJECT : ______________________________

COMPANY/FIRM :_______________________________

ADDRESS :_______________________________

________________________________

BANK/FINANCING INSTITUTION :_______________________________

ADDRESS :_______________________________

________________________________

AMOUNT :_______________________________

This is to certify that the above Bank/Financing Institution with

business address indicated above, commits to provide the

<Supplier/Distributor/Manufacturer/Contractor>, if awarded the above-mentionedContract, a credit line in the amount specified above which shall be

exclusively used to finance the performance of the above-mentioned contract

subject to our terms, conditions and requirements.

The credit line shall be available within fifteen (15) calendar days

after receipt by the <Supplier/Distributor/Manufacturer/Contractor> of the

Notice of Award and such line of credit shall be maintained until the project

is completed by the Contractor.

This Certification is being issued in favor of said

<Supplier/Distributor/Manufacturer/Contractor> in connection with the bidding

requirement of __(Name of the Procuring Entity)__ for the above-mentioned

Contract. We are aware that any false statements issued by us make us liable

for perjury.

Name and Signature of Authorized

Financing Institution Officer : _______________________

Official Designation : _______________________

Concurred By:

Name & Signature of

<Supplier/Distributor/Manufacturer/Contractor>’s

Authorized Representative : _______________________

Official Designation : _______________________

Note:The amount committed should be machine validated.

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ACKNOWLEDGMENT

SUBSCRIBED AND SWORN to before me this _____ day of _____________,

20___, affiant exhibited to me his/her Community Tax Certificate No.

______________ issued on _________________ at _____________________,

Philippines.

Notary Public

Until 31 December 20____

PTR No._______________

Issued at:_______________

Issued on:_______________

TIN No. ________________

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Omnibus Sworn Statement

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.

A F F I D A V I T

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], andresiding at [Address of Affiant], after having been duly sworn in accordancewith law, do hereby depose and state that:

1. Select one, delete the other:

If a sole proprietorship: I am the sole proprietor of [Name of Bidder]with office address at [address of Bidder];

If a partnership, corporation, cooperative, or joint venture: I am the

duly authorized and designated representative of [Name of Bidder] with

office address at [address of Bidder];

2. Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor of [Name ofBidder], I have full power and authority to do, execute and perform anyand all acts necessary to represent it in the bidding for [Name of theProject] of the [Name of the Procuring Entity];

If a partnership, corporation, cooperative, or joint venture: I am

granted full power and authority to do, execute and perform any and all

acts necessary and/or to represent the [Name of Bidder] in the bidding

as shown in the attached [state title of attached document showing proofof authorization (e.g., duly notarized Secretary’s Certificate issuedby the corporation or the members of the joint venture)];

3. [Name of Bidder] is not “blacklisted” or barred from bidding by the

Government of the Philippines or any of its agencies, offices,

corporations, or Local Government Units, foreign government/foreign or

international financing institution whose blacklisting rules have been

recognized by the Government Procurement Policy Board;

4. Each of the documents submitted in satisfaction of the bidding

requirements is an authentic copy of the original, complete, and all

statements and information provided therein are true and correct;

5. [Name of Bidder]is authorizing the Head of the Procuring Entity or itsduly authorized representative(s) to verify all the documents submitted;

6. Select one, delete the rest:

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If a sole proprietorship: I am not related to the Head of the Procuring

Entity, members of the Bids and Awards Committee (BAC), the Technical

Working Group, and the BAC Secretariat, the head of the Project

Management Office or the end-user unit, and the project consultants by

consanguinity or affinity up to the third civil degree;

If a partnership or cooperative: None of the officers and members of

[Name of Bidder] is related to the Head of the Procuring Entity, members

of the Bids and Awards Committee (BAC), the Technical Working Group, and

the BAC Secretariat, the head of the Project Management Office or the

end-user unit, and the project consultants by consanguinity or affinity

up to the third civil degree;

If a corporation or joint venture: None of the officers, directors, and

controlling stockholders of [Name of Bidder] is related to the Head of

the Procuring Entity, members of the Bids and Awards Committee (BAC),

the Technical Working Group, and the BAC Secretariat, the head of the

Project Management Office or the end-user unit, and the project

consultants by consanguinity or affinity up to the third civil degree;

7. [Name of Bidder] complies with existing labor laws and standards; and

8. [Name of Bidder] is aware of and has undertaken the following

responsibilities as a Bidder:

a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the

implementation of the Contract;

c) Made an estimate of the facilities available and needed for the

contract to be bid, if any; and

d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Nameof the Project].

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at

____________, Philippines.

_____________________________________

Bidder’s Representative/Authorized Signatory

[JURAT]

* This form will not apply for WB funded projects

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Bid Form

Date:

To: DEPARTMENT OF AGRICULTURE, RFU 10

Antonio Luna St., Cagayan de Oro City

Gentlemen and/or Ladies:

Having examined the Bidding Documents, the receipt of which is hereby duly

acknowledged, we, the undersigned, offer to [supply/deliver/perform] 2 UNITS VILLAGE

TYPE GRAIN/RICE POSTHARVEST PROCESSING CENTERin conformity with the said Bidding

Documents for the sum of ____________________________________________________________

(Php_________________________) or such other sums as may be ascertained in accordance

with the Schedule of Prices attached herewith and made part of this Bid.

Item

Number

Description Quantity Unit Cost TotalCost

BID LOT 1

BID LOT II

VILLAGE TYPE GRAIN/RICE

POSTHARVEST PROCESSING

CENTER

COMPONENT I: MULTI PASS

RICE MILL

COMPONENT II:

CONSTRUCTION OF

WAREHOUSE

COMPONENT III:

RECIRCULATING DRYER

REHABILITATION AND

RETROFITTING OF BIOMASS

FURNACE TO EXISTING

RECIRCULATING MECHANICAL

DRYER

2 Units

2 Units

2 Units

1 Unit

We undertake, if our Bid is accepted, to deliver the goods in accordance with

the delivery schedule specified in the Schedule of Requirements within_______Calendar

days.

If our Bid is accepted, we undertake to provide a performance security in the

form, amounts, and within the times specified in the Bidding Documents.

We agree to abide by this Bid for the Bid Validity Period within 120 Calendar

days and it shall remain binding upon us and may be accepted at any time before the

expiration of that period.

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Until a formal Contract is prepared and executed, this Bid, together with your

written acceptance thereof and your Notice of Award, shall be binding upon us.

We understand that you are not bound to accept the lowest or any Bid you may

receive.

We certify/confirm that we comply with the eligibility requirements as per ITB

Clause 6 of the Bidding Documents.

Dated this ________________ day of ________________ 20______.

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of ____________________________

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Performance Security (Bank Guarantee)

To: Department of Agriculture RFU10Antonio Luna St., Cagayan de Oro City

WHEREAS__________________________ [name and address of Contractor]

(hereinafter called “the Contractor”) has undertaken, in pursuance of Contract No.

__________________ dated ________________ to execute the construction for the

__________________________ (hereinafter called “the Contract”);

AND WHEREAS it has been stipulated by you in the said Contract that the

Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum

specified therein as security for compliance with his obligations in accordance with

the Contract;

AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee;

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to

you, on behalf of the Contractor, up to a total of __________________________________

[amount of Guarantee]1 __________________________________________________ [in words],

such sum being payable in the types and proportions of currencies in which the

Contract Price is payable, and we undertake to pay you, upon your first written

demand and without cavil or argument, any sum or sums within the limits of

__________________________ [amount of Guarantee] as foresaid without your needing to

prove or to show grounds or reasons for your demand for the sum specifiedtherein.

We hereby waive the necessity of your demanding the said debt from the

Contractor before presenting us with the demand.

We further agree that no change or addition to or other modification of the

terms of the Contract or of the Works to be performed thereunder or of any of the

Contract documents which may be made between you and the Contractor shall in any way

release us from any liability under this guarantee, and we hereby waive notice of any

such change, addition or modification.

This guarantee shall be valid until the date of issue of the Defects Correction

Certificate.

SIGNATURE AND SEAL OF THE GUARANTOR ________________________________

NAME OF BANK _________________________________

ADDRESS _________________________________

DATE _________________________________

__________________1The Guarantor should insert an amount representing the percentage of the Contract Price

specified in the Contract, denominated either in the currency or currencies of the Contract

or in a freely convertible currency acceptable to the Employer.

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Bank Guarantee Form for Advance Payment

To: Department of Agriculture RFU10Antonio Luna St., Cagayan de Oro City

Gentlemen and/or Ladies:

In accordance with the payment provision included in the Special Conditions of

Contract, which amends Clause 10 of the General Conditions of Contract to

provide for advance payment, [name and address of Supplier] (hereinafter

called the “Supplier”) shall deposit with the PROCURING ENTITY a bank

guarantee to guarantee its proper and faithful performance under the said

Clause of the Contract in an amount of [amount of guarantee in figures andwords].

We, the [bank or financial institution], as instructed by the Supplier, agreeunconditionally and irrevocably to guarantee as primary obligator and not as

surety merely, the payment to the PROCURING ENTITY on its first demand without

whatsoever right of objection on our part and without its first claim to the

Supplier, in the amount not exceeding [amount of guarantee in figures andwords].

We further agree that no change or addition to or other modification of the

terms of the Contract to be performed thereunder or of any of the Contract

documents which may be made between the PROCURING ENTITY and the Supplier,

shall in any way release us from any liability under this guarantee, and we

hereby waive notice of any such change, addition, or modification.

This guarantee shall remain valid and in full effect from the date of the

advance payment received by the Supplier under the Contract until [date].

Yours truly,

Signature and seal of the Guarantors

[name of bank or financial institution]

[address]

[date

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Checklist for Goods & Services/Requirements for Bidders

Documents Comprising the Bid: Eligibility and Technical Components.The firstenvelope shall contain the following eligibility and technical documents:

Eligibility Documents – Class “A” Documents:

1. Registration Certificate from the Securities and Exchange Commission

(SEC),Department of Trade and Industry (DTI) for sole proprietorship

or Cooperative Development Authority (CDA) for cooperatives, or any

proofs of such registration whichever may be appropriate under

existing laws of the Philippines, supported with the necessary

information using the prescribed forms;

2. Valid and current Mayor’s permit/municipal license for principal

place of business of the prospective bidder is located;

3. Statement of ongoing and similar completed government and private

contracts within the period of 5 years, including contracts awarded

but not yet started, if any. The statement shall include, for each

contract, the following:

(iii.1) Name of the Contract;

(iii.2) Date of the Contract;

(iii.3) Kinds of Goods;

(iii.4) Amount of Contract and value of outstanding contracts;

(iii.5) Date of the delivery; and

(iii.6) End user’s acceptance or official receipts(s) issued for

the contract, if completed;

4. Audited financial statements, stamped “received” by the Bureau of

Internal Revenue (BIR) or its duly accredited and authorized institutions, for

the preceding calendar year, which should not be earlier than two (2) years

from bid submission;(CY2011-CY2010) & (CY2010- CY2009)

1. Computation of Net Financial Contracting Capacity (NFCC); OR Credit Line

Commitment at least equal to 10% of Approved Budget for the Contract,

issued/confirmed by Universal and Commercial Bank;

Class “B” Documents:

2. If applicable, the JVA in case the joint venture is already in existence,

or duly notarized statements from all the potential joint venture

partners stating that they will enter into and abide by the provisions of

the JVA in the instance that the bid is successful.

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3. Bid security. If the Bidder opts to submit the bid security in the form

of:

FORM OF BID SECURITY Amount of Bid Security

(Equal to Percentage of the

Approved Budget of the

Contract)

1. Cash, cashier’s/manager’s check, issued

by a Universal or Commercial Bank.

Two percent (2%)

2. Bank draft/guarantee or irrevocable letter

of credit issued by a Universal or

Commercial bank: Provided, however, that

it shall be confirmed or authenticated by

a Universal or Commercial Bank, if issued

by a foreign bank.

3.Surety Bond callable upon demand issued by

a surety or insurance company duly

certified by the Insurance Commission as

authorized to issue such security

Five percent (5%)

4. Any combination of the foregoing Proportionate to share of

form with respect to total

amount of security

5. Bid Securing Declaration

(GPPB Res. No. 03-2012,dated January 2012)

Form attachedForm attached

4. Conformity withTechnical Specifications, as enumerated and specified in

Sections VI (Schedule of Requirements) and VII (Technical Specification) of

the Bidding Documents; and

5. Omnibus Sworn Statement in accordance with Section 25.2(a)(iv) of the IRR

of RA 9184 and using the form prescribed.

Documents Comprising the Bid: Financial Components. The second envelope shallcontain the following:

1. Financial Bid Form, which includes bid prices and the bill of quantities

and the applicable Price Schedules, in accordance with ITB Clauses 15.1

and 15.4;

2. If the Bidder claims preference as a Domestic Bidder or Domestic Entity,

a certification from the DTI, SEC, or CDA issued in accordance with ITB

Clause 27, unless otherwise provided in the BDS; and

3. Any other document related to the financial component of the bid as

stated in the BDS. Unless otherwise stated in the BDS, all bids that

exceed the ABC shall not be accepted.

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SEALING AND MARKING OF BIDS

1. Bidders shall enclose their ORIGINAL eligibility and technical documents in

ONE (1) SEALED envelope marked “ORIGINAL - TECHNICAL COMPONENT”, and the

original of their financial component in another sealed envelope marked

“ORIGINAL - FINANCIAL COMPONENT”, sealing them all in an outer envelope

marked “ORIGINAL BID”.

2. EACH COPY of the first and second envelopes shall be similarly sealed duly

marking the inner envelopes as “COPY NO. 1 - TECHNICAL COMPONENT”;

“COPY NO. 2 - TECHNICAL COMPONENT”; “COPY NO. 3 - TECHNICAL COMPONENT”

and “COPY NO. 1 – FINANCIAL COMPONENT”; “COPY NO. 2 – FINANCIAL

COMPONENT”; “COPY NO. 3 – FINANCIAL COMPONENT”; and the outer envelope

as “COPY NO. 1,2,3”, respectively. These envelopes containing the

original and the copies shall then be enclosed in one single envelope.

3. The original and the number of copies of the Bid shall be typed or written

in indelible ink and shall be signed by the bidder or its duly authorized

representative/s.

All envelopes shall:

contain the name of the contract to be bid in capital

letters;

bear the name and address of the Bidder in capital letters;

be addressed to the Bids and Awards Committee, Department of

Agriculture RFU10, Antonio Luna St., Cagayan de Oro City;

bear the specific identification of this bidding process

indicated in the ITB Clause 1.2; and

bear a warning “DO NOT OPEN BEFORE…” the date and time

for the opening of bids.

If bids are not sealed and marked as required, the Bids and Awards Committee,

Department of Agriculture RFU10 will assume no responsibility for the

misplacement or premature opening of the bid.

POST-QUALIFICATION

1. The Procuring Entity shall determine to its satisfaction whether the

Bidder that is evaluated as having submitted the Lowest Calculated Bid

(LCB) complies with and is responsive to all the requirements and

conditions;

2. Within a NON-EXTENDIBLE PERIOD OF THREE (3) CALENDAR DAYS from receipt

by the bidder of the notice from the BAC that it submitted the LCB, the

Bidder shall submit the following documentary requirements:

2.1. Tax clearance per Executive Order 398, Series of 2005, issued by

the BIR National Collection Division;

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2.2. Latest income and business tax returns in the form specified in

the BDS;

2.3. Certificate of PhilGEPS Registration; and

2.4. Other appropriate licenses and permits required by law and stated

in the BDS. (ex. Original Brochure NSIC or BPI Certificate of

Registration/Accreditation/AMTEC Results for Postharvest

Equipment.

Failure of the Bidder declared as Lowest Calculated Bid to duly submit the

requirements under this Clause or a finding against the veracity of such shall

be ground for forfeiture of the bid security and disqualification of the

Bidder for award.

The determination shall be based upon an examination of the documentary

evidence of the Bidder’s qualifications submitted, as well as other

information as the Procuring Entity deems necessary and appropriate, using a

non-discretionary “pass/fail” criterion.

PERFORMANCE SECURITY

1. To guarantee the faithful performance by the winning Bidder of its

obligations under the contract, it shall post a performance security

WITHIN A MAXIMUM PERIOD OF THREE (3) CALENDAR DAYS from the receipt of

the Notice of Award from the Department of Agriculture RFU10 and in no

case later than the signing of the contract.

2. The performance security shall be denominated in Philippine Pesos and

posted in favor of the Department of Agriculture RFU10 in an amount

equal to the percentage of the total contract price in accordance with

the following schedule:

Form of Performance Security

Amount of Performance

Security

(Equal to Percentage of the

Total Contract Price)

Cash or cashier’s/manager’s check issued

by a Universal or Commercial Bank.

Five percent (5%)

Bank draft/guarantee or irrevocable letter

of credit issued by a Universal or

Commercial Bank: Provided, however, that

it shall be confirmed or authenticated by

a Universal or Commercial Bank, if issued

by a foreign bank.

Surety bond callable upon demand issued by a

surety or insurance company duly certified

by the Insurance Commission as authorized to

issue such security; and/or

Thirty percent (30%)

Any combination of the foregoing. Proportionate to share of

form with respect to total

amount of security

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Failure of the successful Bidder to comply with the above-mentioned

requirement shall constitute sufficient ground for the annulment of the award

and forfeiture of the bid security, in which event the Department of

Agriculture RFU10 shall initiate and complete the post qualification of the

second Lowest Calculated Bid. The procedure shall be repeated until the LCRB

is identified and selected for contract award. However if no Bidder passed

post-qualification, the BAC shall declare the bidding a failure and conduct a

re-bidding with re-advertisement.

WARRANTY

In order to assure that manufacturing defects shall be corrected by the

Supplier, a warranty shall be required from the Supplier for a minimum period

of THREE (3) MONTHS for EXPENDABLE SUPPLIES and ONE (1) YEAR for NON-

EXPENDABLE SUPPLIES. The obligation for the warranty shall be covered by, at

the Supplier’s option, either retention money in an amount equivalent to at

least ten percent (10%) of the final payment, or a special bank guarantee

equivalent to at least ten percent (10%) of the Contract. The said amounts

shall only be released after the lapse of the warranty period provided,

however, that the Supplies delivered are free from patent and latent defects

and all the conditions imposed under this Contract have been fully met.

TYPE PERIOD FORM Percentage of

Contract Price

Expendable 3 mos., unless

earlier consumedSpecial bank

guarantee or

Retention money

10%

Non-Expendable 1 year

Service None None None

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